Company: RCUS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001724521-25-000063
Chunk: 222

Company: Arcus Biosciences, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 222
---
 development program in the third quarter 2024

The following table summarizes our R&D expenses by category (in millions):

Three Months EndedMarch 31,Category20252024ChangeLate-stage development programs$55 $63 (13)%Early-stage R&D and preclinical programs42 25 68 %Compensation and personnel costs49 45 9 %Other costs14 13 8 %Partnership reimbursements(38)(37)3 %Total research and development$122 $109 12 %

The increase in R&D expenses for the three months ended March 31, 2025 was primarily driven by higher costs in our early-stage development and preclinical program activities, driven by higher enrollment in our Phase 2 studies, primarily casdatifan. Our growing headcount drove an increase in compensation and personnel costs, offset by a $2 million decrease in non-cash stock-based compensation. The overall increase was partially offset by reduced spend in our late-stage development activities due to lower manufacturing costs due to the timing of manufacturing activities.

R&D expense by quarter may fluctuate due to the timing of clinical manufacturing and standard-of-care therapeutic purchases with a corresponding impact on reimbursements.

26

General and Administrative Expenses

The decrease in G&A expenses for the three months ended March 31, 2025 was primarily driven by costs recognized in the prior year in connection with the Third Gilead Agreement Amendment, as well as a decrease in compensation and personnel costs driven by a $2 million decrease in non-cash stock-based compensation.

Impairment of Long-Lived Assets

The impairment expense for the three months ended March 31, 2024 was due to our 2024 evaluation and sublease of a portion of our office space, resulting in an impairment charge of $20 million.

Non-Operating Income, net

The decrease in Non-operating income, net for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, was primarily due to interest expense on our long-term debt agreement which we entered into in the third quarter of 2024.

Income Tax Expense

There was no Income tax expense for the three months ended March 31, 2025 or 2024 due to no taxable income in either period.

Liquidity and Capital Resources 

Our cash and investments are held in a variety of interest-bearing instruments, including money market funds, U.S. government treasury and agency obligations,