Company: DNLI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001714899-25-000193
Chunk: 197

Company: Denali Therapeutics Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 197
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 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. Upon completion of construction in the second quarter of 2025, the Company recorded total assets of approximately $47.4 million within the Finance lease ROU asset, 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 September 30, 2025.There were no changes to the terms of the leases recognized under ASC 842 during the three and nine months ended September 30, 2025 or 2024.Operating lease costs, excluding variable lease costs, were $1.9 million and $5.7 million for the three and nine months ended September 30, 2025, respectively, and $1.9 million and $5.8 million for the three and nine months ended September 30, 2024, respectively. Variable lease costs related to the operating lease were $1.5 million and $4.1 million for the three and nine months ended September 30, 2025, respectively, and $1.6 million and $3.9 million for the three and nine months ended September 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 September 30, 2025, and $2.7 million and $0.5 million, respectively, for the nine months ended September 30, 2025. Finance lease costs representing amortization of ROU assets and interest on lease liability were $0.4 million and $0.1 million, respectively, for both the three and nine months ended September 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 September 30,Nine Months Ended September 30,2025202420252024Operating cash flows from operating lease$2,980 $2,885 $8,813 $8,532 As of September 30,20252024Weighted-average remaining lease term (in years):Operating lease3