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Leases
 12 Months Ended
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 LiabilitiesClassification20232022
(in thousands)
Operating lease assetsRight-of-use assets$45,297 $58,291 
Current operating lease liabilitiesLease liabilities10,563 2,776 
Non-current operating lease liabilitiesLease liabilities, net of current portion104,608 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 CostClassification202320222021
(in thousands)
Operating lease costResearch and development$10,350 $7,278 $3,649 
General and administrative expense1,730 1,757 1,498 
Variable lease cost(1)
Research and development1,179 728 814 
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:
YearAmounts
(in thousands)
2024$10,735 
202515,000 
202615,341 
202714,514 
202813,156 
2029 and thereafter124,951 
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,
202320222021
(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)13.578
Weighted-average discount rate8.0 %8.5 %8.5 %