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Leases
 3 Months Ended
Dec. 31, 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 December 31, 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 December 31, 2024.
The lease agreement, as amended, granted the Company the right to receive an Additional Tenant Improvement Allowance (“ATIA”) funded by the lessor. The Company received $30.8 million in ATIA, including a final payment of $3.1 million during the first quarter of fiscal 2024. 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.
Madison, Wisconsin: The Company leases 107,000 square feet space located at 502 South Rosa Road for its office and laboratory facilities, 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 December 31, 2024.
The components of lease assets and liabilities along with their classification on the Company’s consolidated balance sheets were as follows:
Lease Assets and LiabilitiesClassificationDecember 31, 2024September 30, 2024
(in thousands)
Operating lease assetsRight-of-use assets$44,869 $45,255 
Current operating lease liabilitiesLease liabilities6,560 6,342 
Non-current operating lease liabilitiesLease liabilities, net of current portion109,296 111,027 
Three Months Ended December 31,
Lease CostClassification20242023
(in thousands)
Operating lease costResearch and development$2,811 $2,994 
General and administrative expense493 476 
Variable lease cost (1)
Research and development985 779 
General and administrative expense— — 
Total $4,289 $4,249 
(1) Variable lease cost is primarily related to operating expenses associated with the Company’s operating leases.
There was $0 short-term lease cost during the three months ended December 31, 2024 and 2023, respectively.
The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2024:
YearAmounts
(in thousands)
2025 (remainder of fiscal year)$11,616 
202615,799 
202714,974 
202813,619 
202913,905 
2030 and thereafter114,790 
Total$184,703 
Less imputed interest$(68,847)
Total operating lease liabilities (includes current portion)$115,856 
Supplemental cash flow and other information related to leases was as follows:
Three Months Ended December 31,
20242023
Cash received for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$— $3,099 
Right-of-use assets adjusted in exchange for new/amended operating lease liabilities$— $64 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$3,840 $2,080 
Weighted-average remaining lease term (in years)12.413.3
Weighted-average discount rate8.0 %8.0 %