Company: DNLI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001714899-25-000193
Chunk: 199

Company: Denali Therapeutics Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 199
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 for the services provided and batches delivered in accordance with the DMSA and project plan. Unless earlier terminated, the DMSA will expire when all development and manufacturing services are completed, which is not expected to be before January 2028. As of September 30, 2025 and December 31, 2024, the Company had total non-cancellable purchase commitments under the DMSA of $7.5 million and $36.7 million, respectively.During the three months ended September 30, 2025 and 2024, the Company incurred costs of $0.7 million and $6.0 million, respectively, and made payments of $1.0 million and $1.9 million, respectively, for the development and manufacturing services rendered under the DMSA. During the nine months ended September 30, 2025 and 2024, the Company incurred costs of $4.6 million and $28.6 million, respectively, and made payments of $11.9 million and $32.2 million, respectively, for the development and manufacturing services rendered under the DMSA.

17

In the normal course of business, the Company enters into other firm purchase commitments primarily related to research and development activities. The Company had contractual obligations under certain clinical and manufacturing agreements other than the DMSA of $31.9 million and $24.1 million, as of September 30, 2025 and December 31, 2024, respectively, with certain amounts subject to cost sharing with Takeda.

ContingenciesFrom time to time, the Company may be involved in lawsuits, arbitration, claims, investigations and proceedings consisting of intellectual property, employment and other matters which arise in the ordinary course of business. The Company records accruals for loss contingencies to the extent that the Company concludes that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated.

7.    Common Stock

On February 27, 2024, the Company entered into a securities purchase agreement (the "Purchase Agreement") with certain investors for the private placement of (i) 3,244,689 shares of Denali's common stock at a price of $17.07 per share and (ii) pre-funded warrants to purchase an aggregate of 26,046,065 shares of Denali's common stock (the "Pre-Funded Warrants") at a purchase price of $17.06 per Pre-Funded Warrant,