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Leases
 12 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases 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 additional five-year term. The Company is not reasonably certain that it will exercise this option to renew and therefore it is not included in right-of-use assets and liabilities as of September 30, 2024.
San Diego, California: The Company leases 144,000 square feet of office and research and development laboratory space located at 10102 Hoyt Park from 11404 & 11408 Sorrento Valley Owner, LLC, which lease expires on April 30, 2038. 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 Company is not reasonably certain that it will exercise this option to renew and therefore it is not included in right-of-use assets and liabilities as of September 30, 2024.
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 received $3.1 million and $27.7 million in ATIA from the lessor during fiscal years 2024 and 2023, respectively. As a result, the Company remeasured its lease liability and right-of-use assets to reflect these additional allowances and the related increased lease payments. The Company has further concluded that these ATIAs have no effects on the classification of the lease.
The Company previously subleased additional research and development space in San Diego, California, which sublease ended during the fiscal year of 2023.
Madison, Wisconsin: The Company leases 107,000 square feet space located at 502 South Rosa Road for its office and laboratory facilities from University Research Park, Inc., which lease expires on September 30, 2031. The lease contains options to renew for two terms of five years. The Company is not reasonably certain that it will exercise this option and therefore it is not included in right-of-use assets and liabilities as of September 30, 2024.
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 LiabilitiesClassification20242023
(in thousands)
Operating lease assetsRight-of-use assets$45,255 $45,297 
Current operating lease liabilitiesLease liabilities6,342 10,563 
Non-current operating lease liabilitiesLease liabilities, net of current portion111,027 104,608 
Year Ended September 30,
Lease CostClassification202420232022
(in thousands)
Operating lease costResearch and development$11,035 $10,350 $7,278 
General and administrative expense2,006 1,730 1,757 
Variable lease cost(1)
Research and development3,648 1,179 728 
General and administrative expense— — — 
Total $16,689 $13,259 $9,763 
(1) Variable lease cost is primarily related to operating expenses associated with the Company’s operating leases.
There was $0, $1.4 million and $0.3 million short-term lease cost during the years ended September 30, 2024, 2023, and 2022, respectively.
The following table presents maturities of operating lease liabilities on an undiscounted basis as of September 30, 2024:
YearAmounts
(in thousands)
2025$15,456 
202615,799 
202714,974 
202813,619 
202913,905 
2030 and thereafter114,790 
Total$188,543 
Less imputed interest(71,174)
Total operating lease liabilities$117,369 
Supplemental cash flow and other information related to leases was as follows:
Year Ended September 30,
202420232022
(in thousands)
Cash received for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$3,099 $48,391 $— 
Right-of-use assets adjusted in exchange for new/amended operating lease liabilities$(29)$17,071 $— 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$11,038 $5,204 $4,500 
Weighted-average remaining lease term (in years)12.513.57
Weighted-average discount rate8.0 %8.0 %8.5 %