Company: WHWK
Filing Date: 2025-01-21
Form Type: PREM14A
Source: 0001193125-25-009599
Chunk: 492

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-21
Form: PREM14A
Chunk 492
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 patients meeting certain eligibility requirements. Co-paymentassistance is accrued at the time of product sale to SDs and SP based on estimated patient participation and average co-paybenefit to be paid per claim. The Company estimated amounts are compared to actual program participation and co-payamounts paid using data provided by third-party administrators. If actual amounts differ from the original estimates the assumptions being applied are updated and adjustment for prior period accruals will be adjusted in the current period. Product Returns:Consistent with industry practice, the Company offers the SDs and SP limited product return rights for damages, shipment errors, and expiring product, provided that the return is within a specified period around the product expiration date as set forth in the applicable individual distribution agreement. The Company does not allow product returns for product that has been dispensed to a patient. As the Company receives inventory reports from the SDs and SP and has the ability to control the amount of product that is sold to the SDs and SP the Company’s estimate of future potential product returns is based on the on-handchannel inventory data and sell-through data obtained from the SDs and SP. In arriving at its estimate, the Company also considers historical product returns, the underlying product demand, and industry data specific to the specialty pharmaceutical distribution industry. The total amount deducted from gross product sales for the allowances described above for the years ended December 31, 2023 and 2022 was $4.6 million and $2.4 million, respectively. The following table sets forth the changes in the accrued revenue allowances (in thousands):

|                                    |     | As of December 31, |   2023 |   |     |   |   2022 |   |
|:-----------------------------------|:----|:-------------------|-------:|:--|:----|:--|-------:|:--|
| Balance at beginning of period     |     | $                  |  1,434 |   |     | $ |      — |   |
| Provision for current period sales |     |                    |  4,648 |   |     |   |  2,438 |   |
| Payments                           |     |                    | (5,017 | ) |     |   | (1,004 | ) |
| Balance at end of period           |     | $                  |  1,065 |   |     | $ |  1,434 |   |

F-15

Research and Development

Research and development expenses consist of