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Leases | 6 Months Ended
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Mar. 31, 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. This facility replaces the Company’s current office and research facility located in San Diego, California. The increased capacity of this new facility compared to the Company’s current research facility in San Diego will accommodate increased personnel for its expanding pipeline of current and future drug candidates. The lease payments which began on April 19, 2023, the rent commencement date, will be approximately $119.0 million over the initial 15-year term. The Company also estimates payments for operating expenses to be approximately $3.0 million for the first year of the lease, and these payments will continue throughout the initial 15-year term. The Company expects to pay approximately $32.0 million for leasehold improvements, net of tenant improvement allowances. 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. Other Significant Leases Pasadena, California: The Company leases 49,000 square feet of office space located at 177 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 facility 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 will end 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 111,000 square feet. The components of lease assets and liabilities along with their classification on the Company’s consolidated balance sheets were as follows:
Lease Assets and Liabilities | Classification |  | March 31, 2023 |  | September 30, 2022
|  |  | (in thousands)
Operating lease assets | Right-of-use assets |  | $ | 41,114 |  |  | $ | 58,291 |
Current operating lease liabilities | Lease liabilities |  | 2,711 |  |  | 2,776 |
Non-current operating lease liabilities | Lease liabilities, net of current portion |  | 80,070 |  |  | 78,800 |
|  |  | Three Months Ended March 31, |  | Six Months Ended March 31,
Lease Cost | Classification |  | 2023 |  | 2022 |  | 2023 |  | 2022
|  |  | (in thousands)
Operating lease cost | Research and development |  | $ | 2,343 |  |  | $ | 905 |  |  | $ | 4,412 |  |  | $ | 1,783 |
| General and administrative expense |  | 500 |  |  | 420 |  |  | 1,033 |  |  | 840 |
Variable lease cost | Research and development |  | 160 |  |  | 182 |  |  | 370 |  |  | 340 |
| General and administrative expense |  | — |  |  | — |  |  | — |  |  | — |
Total |  |  | $ | 3,003 |  |  | $ | 1,507 |  |  | $ | 5,815 |  |  | $ | 2,963 |
Variable lease cost primarily related to operating expenses associated with the Company’s operating leases. There was $0.4 million and $0.3 million short-term lease cost during the three months ended March 31, 2023, and 2022, respectively. There was $0.7 million and $0.5 million short-term lease cost during the six months ended March 31, 2023, and 2022, respectively. The following table presents payments of operating lease liabilities on an undiscounted basis as of March 31, 2023:
Year | Amounts
| (in thousands)
2023 (remainder of fiscal year) | $ | 3,070 |
2024 | 8,094 |
2025 | 11,800 |
2026 | 12,138 |
2027 | 11,297 |
2028 and thereafter | 102,813 |
Total | $ | 149,212 |
Less imputed interest | (66,431) |
Total operating lease liabilities (includes current portion) | $ | 82,781 |
Supplemental cash flow and other information related to leases was as follows:
|  | Six Months Ended March 31,
|  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases (in thousands) |  | $ | 2,503 |  |  | $ | 2,171 |
|  | March 31, 2023
|  | 2023 |  | 2022
Weighted-average remaining lease term (in years) |  | 6.6 |  | 7.6
Weighted-average discount rate |  | 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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