Company: DAWN
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026654
Chunk: 354

Company: Day One Biopharmaceuticals, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 354
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-party vendors for clinical trial, manufacturing, testing, and other research and development activities. These contracts generally provide for termination on notice, with the exception of one vendor where certain costs are non-cancellable after the approval of the project. As of December 31, 2024, there were no amounts accrued related to termination and cancellation charges as these are not probable.

License Agreements

Under our license agreements, we have payment obligations that are contingent upon future events such as our achievement of specified development, regulatory and commercial milestones and are required to make royalty payments in connection with the sale of products developed under those agreements. The amount and timing of milestone obligations are unknown or uncertain as we are unable to estimate the timing or likelihood of achieving the milestone events. Additionally, the amount of royalty payments are based upon future product sales, which we are unable to predict with certainty. These potential obligations are further described in Note 5 to the financial statements.

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Cash flows 

The following table summarizes our sources and uses of cash for the periods presented:

    Year EndedDecember 31,

    2024

    2023

    Net cash used in operating activities
     
    $
    (78,113
    )
     
    $
    (146,853
    )

    Net cash (used in) provided by investing activities

    (230,994
    )

    128,378

    Cash provided by financing activities

    203,291

    163,997

    Net (decrease) increase in cash and cash equivalents
     
    $
    (105,816
    )
     
    $
    145,522

Operating activities 

Net cash used in operating activities for the year ended December 31, 2024 was $78.1 million consisting of our net loss of $95.5 million and non-cash charges of $9.1 million, which were offset by changes in net operating assets and liabilities of $26.5 million. Non-cash charges consisted primarily of a gain from sale of PRV of $108.0 million and accretion of discounts on short-term investments of $6.4 million partially offset by acquired in-process research and development assets of $55.0 million, shared-based compensation expense of $48.3 million, amortization of intangible assets of $1.5 million, and amortization of operating right-of-use asset of $0.5 million. Changes in operating assets and liabilities were primarily related to increases in accrued expenses and