Company: DNLI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001714899-25-000105
Chunk: 114

Company: Denali Therapeutics Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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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 31, 20244,128,514 $27.33 Granted1,702,450 21.07 Vested and released(916,480)33.57 Forfeited(65,369)23.43 Unvested and expected to vest at March 31, 20254,849,115 $24.00 Stock-Based Compensation ExpenseThe Company’s results of operations include expenses relating to stock-based compensation as follows (in thousands):Three Months Ended March 31,20252024Research and development$15,137 $16,342 General and administrative10,023 11,498 Total$25,160 $27,840 

9.    Net Loss Per Share