Company: DNLI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001714899-25-000105
Chunk: 407

Company: Denali Therapeutics Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 407
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 Warrant, which represents the per share price for the common stock less the $0.01 exercise price. The private placement closed on February 29, 2024, at which time the Company received aggregate net proceeds of approximately $499.3 million, after deducting issuance costs of approximately $0.5 million.The Pre-Funded Warrants were classified as a component of permanent equity in the Company’s consolidated balance sheet as they are freestanding financial instruments that are immediately exercisable, do not embody an obligation for the Company to repurchase its shares and permit the holders to receive a fixed number of shares of common stock upon exercise. All of the Pre-Funded Warrants issued in the private placement were outstanding as of March 31, 2025.

8.    Stock-Based Awards

The Company has issued stock-based awards from various equity incentive and stock purchase plans, as more fully described in Note 9, "Stock-Based Awards" to the consolidated financial statements in the Company's 2024 Annual Report on Form 10-K.Stock Option ActivityThe following table summarizes stock option activity for the three months ended March 31, 2025:Number of OptionsWeighted-Average Exercise PriceBalance at December 31, 202418,660,150 $25.99 Granted3,780,107 21.09 Exercised(113,792)5.23 Forfeited(131,732)26.38 Balance at March 31, 202522,194,733 $25.26 Vested and expected to vest at March 31, 202521,384,862 $26.19 Exercisable at March 31, 202512,853,171 $28.35 

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The estimated fair value of stock options granted to employees were calculated using the Black-Scholes option-pricing model using the following assumptions:Three Months Ended March 31,20252024Expected term (in years)6.086.08Volatility64.8% - 65.3%64.5% - 64.6%Risk-free interest rate4.0% - 4.5%3.9% - 4.0%Dividend yield——Restricted Stock ActivityThe following table summarizes restricted stock unit ("RSU") activity for the three months ended March 31, 2025:Number of RSU sharesWeighted-Average Fair Value at Date of Grant per ShareUnvested at December