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Leases | 12 Months Ended
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Sep. 30, 2023
Leases [Abstract] |
Leases | LEASES On November 19, 2021, the Company entered into a 15-year lease for approximately 144,000 square feet of office and research and development laboratory space in San Diego, California, for which the rent commencement date began on April 19, 2023. This new facility accommodates increased personnel for its expanding pipeline of current and future drug candidates. Pursuant to the lease, within twelve months of the expiration of the initial 15-year term, the Company has the option to extend the lease for up to one additional ten-year term, with certain annual increases in base rent. The lease agreement grants the Company the right to receive an Additional Tenant Improvement Allowance (“ATIA”) funded by the lessor, with a maximum amount of $7.2 million, subject to a 7% interest per annum over the base term. Further, on September 25, 2023, the Company executed the first amendment to the lease, which grants a second ATIA with a maximum amount of $23.6 million, bearing interest at a rate of 9% per annum over the base term. The Company has received $27.8 million ATIA from the lessor as of September 30, 2023. As a result, the Company remeasured its lease liability and right-of-use assets to reflect these additional allowances and the related increase lease payments. The Company has further concluded that these ATIAs have no effects on the classification of the lease. Other Significant Leases Pasadena, California: The Company leases 49,000 square feet of office space located at 177 East Colorado Blvd. for its corporate headquarters from 177 Colorado Owner, LLC, which lease expires on April 30, 2027. The lease contains an option to renew for one term of five years. San Diego, California: The Company subleased space from Halozyme, Inc. for additional research and development space in San Diego, California. The term of this sublease commenced on April 1, 2020 and ended on January 14, 2023. On December 23, 2022, the Company entered into a new six-month lease agreement with 11404 & 11408 Sorrento Valley Owner (DE) LLC, effective January 15, 2023. The lease ended on July 15, 2023. Madison, Wisconsin: The Company leases space for office and laboratory facilities, which expires on September 30, 2031. The lease contains options to renew for two terms of five years. After accounting for additional rental square feet added pursuant to amendments to the lease agreement in 2019 and 2020, the Company currently leases a total of 115,000 square feet. The components of lease assets and liabilities along with their classification on the Company’s consolidated balance sheets were as follows:
|  |  | September 30,
Lease Assets and Liabilities | Classification |  | 2023 |  | 2022
|  |  | (in thousands)
Operating lease assets | Right-of-use assets |  | $ | 45,297 |  |  | $ | 58,291 |
Current operating lease liabilities | Lease liabilities |  | 10,563 |  |  | 2,776 |
Non-current operating lease liabilities | Lease liabilities, net of current portion |  | 104,608 |  |  | 78,800 |
The components of lease cost along with its classification on the Company’s consolidated statements of operations were as follows:
|  |  | Year Ended September 30,
Lease Cost | Classification |  | 2023 |  | 2022 |  | 2021
|  |  | (in thousands)
Operating lease cost | Research and development |  | $ | 10,350 |  |  | $ | 7,278 |  |  | $ | 3,649 |
| General and administrative expense |  | 1,730 |  |  | 1,757 |  |  | 1,498 |
Variable lease cost(1) | Research and development |  | 1,179 |  |  | 728 |  |  | 814 |
| General and administrative expense |  | — |  |  | — |  |  | 1 |
Total |  |  | $ | 13,259 |  |  | $ | 9,763 |  |  | $ | 5,962 |
(1) Variable lease cost is primarily related to operating expenses associated with the Company’s operating leases. There was $1.4 million, $0.3 million and $0 short-term lease cost during the years ended September 30, 2023, 2022, and 2021, respectively. The following table presents maturities of operating lease liabilities on an undiscounted basis as of September 30, 2023:
Year | Amounts
| (in thousands)
2024 | $ | 10,735 |
2025 | 15,000 |
2026 | 15,341 |
2027 | 14,514 |
2028 | 13,156 |
2029 and thereafter | 124,951 |
Total | $ | 193,697 |
Less imputed interest | (78,526) |
Total operating lease liabilities | $ | 115,171 |
Supplemental cash flow and other information related to leases was as follows:
|  | Year Ended September 30,
|  | 2023 |  | 2022 |  | 2021
|  | (in thousands)
Cash received for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 48,391 |  |  | $ | — |  |  | $ | — |
Right-of-use assets obtained in exchange for amended operating lease liabilities |  | $ | 17,071 |  |  | $ | — |  |  | $ | — |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 5,204 |  |  | $ | 4,500 |  |  | $ | 3,100 |
Weighted-average remaining lease term (in years) |  | 13.5 |  | 7 |  | 8
Weighted-average discount rate |  | 8.0 | % |  | 8.5 | % |  | 8.5 | %

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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