Company: DNLI
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001714899-25-000170
Chunk: 198

Company: Denali Therapeutics Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 198
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     Commitments and Contingencies

Lease ObligationsIn May 2018, the Company entered into an operating lease for its corporate headquarters in South San Francisco (the "Headquarters Lease"). In April 2023, the Company entered into a finance lease for its clinical manufacturing site in Salt Lake City (the "SLC Lease"). Both leases are further described in Note 7, "Commitments and Contingencies," to the consolidated financial statements in the Company's 2024 Annual Report on Form 10-K. Within the total ROU assets for the SLC Lease, the Company recorded assets of $44.4 million and $41.6 million as of June 30, 2025 and December 31, 2024, respectively, which were purchased by the Company but are considered to be owned by the landlord. The current finance lease liability is included in other accrued costs and current liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2025.There were no changes to the terms of the leases recognized under ASC 842 during the three and six months ended June 30, 2025 or 2024.Operating lease costs, excluding variable lease costs, were $1.9 million and $3.8 million for the three and six months ended June 30, 2025, respectively, and $1.9 million and $3.9 million for the three and six months ended June 30, 2024, respectively. Variable lease costs related to the operating lease were $1.2 million and $2.5 million for the three and six months ended June 30, 2025, respectively, and $1.2 million and $2.3 million for the three and six months ended June 30, 2024, respectively. Finance lease costs representing amortization of ROU assets and interest on lease liability were $0.9 million and $0.2 million, respectively, for the three months ended June 30, 2025, and $1.8 million and $0.4 million, respectively, for the six months ended June 30, 2025. There was no finance lease costs for the three and six months ended June 30, 2024. The following tables contain a summary of other information pertaining to the Company’s leases for the periods presented (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Operating cash flows from operating