Company: WHWK
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023932
Chunk: 454

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 454
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 The Company uses the Black-Scholes model to determine the estimated fair value for purchases under the 2021 ESPP. Black-Scholes models require the input of various assumptions, including the expected life, expected dividend yield, price volatility and risk-free interest rate of the underlying stock. The expected volatility used in calculating the estimated fair value for purchases under the 2021 ESPP is based on the historical volatility of the Company's common stock.The calculation was based on the following assumptions: Three Months Ended March 31, 2025Strike price (per share)$2.11Risk-free interest rate4.44% Expected volatility55.26%Expected term (in years)0.5Expected dividend yield—

As of March 31, 2025, and December 31, 2024, 1,057,550 and 810,743 shares of common stock were available for issuance under the 2021 ESPP, respectively. The Company had an outstanding liability of $0.1 million and $37,000 as of March 31, 2025, and December 31, 2024, respectively, which will be recognized over six months. No shares were issued under the 2021 ESPP during the three months ended March 31, 2025, and 2024, respectively. 

11. Income Taxes 

The Company recorded income tax expense of zero for the three months ended March 31, 2025 and 2024, respectively. The Company continues to maintain a full valuation allowance. 

12. Commitments and Contingencies

LitigationFrom time to time, the Company could be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Regardless of the outcome, legal proceedings can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Purchase CommitmentsThe Company has ongoing contracts with vendors for clinical trials and contract manufacturing. These contracts are generally cancellable, with notice, at the Company’s option. The Company recorded accrued expenses of $1.3 million and $3.6 million for expenditures incurred by clinical and contract manufacturing vendors as of March 31, 2025, and December 31, 2024, respectively.

21

Mirati CollaborationIn October 2022, the Company entered into a collaboration and supply agreement with Mirati Therapeutics, Inc. (“Mirati”) to evaluate the combination of Mirati’s adagrasib, a KRASG12C