Company: WHWK
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023932
Chunk: 435

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 435
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 or estimated net realizable value. The Company uses actual costing methodology determined on a first-in, first-out method. The Company capitalizes inventory costs associated with its products based upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed. As of December 31, 2024, inventory included balances associated with Aadi Subsidiary, Inc., which was sold on March 25, 2025. Inventory related to Aadi Subsidiary, Inc. was removed from the consolidated condensed balance sheet as of the sale date. See Note 14 for more information.Details of inventory are presented as follows (in thousands):March 31, 2025December 31, 2024Raw materials$— $3,533 Work in process— — Finished goods— 1,778 Total $— $5,311 Property and Equipment, Net

9

Property and equipment, consisting of computers and software, construction in process, furniture and fixtures, lab equipment, and leasehold improvements are stated at cost, less accumulated depreciation. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets, generally three to five years. Such costs are periodically reviewed for recoverability when impairment indicators are present.Details of property and equipment are presented as follows (in thousands): March 31, 2025December 31, 2024Computers and Software$341 $470 Construction in process— 6,590 Furniture and fixtures36 65 Lab equipment— 51 Leasehold improvements— 133 Total$377 $7,309 Accumulated depreciation(352)(463)Property and equipment, net$25 $6,846 Depreciation expense on property, plant, and equipment amounted to $57,000 and $50,000 for the three months ended March 31, 2025 and 2024, respectively.LeasesAt the inception of a contractual arrangement, the Company determines whether the contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. If both criteria are met, the Company records the associated lease liability and corresponding right-of-use asset upon commencement of the lease using the implicit rate or a discount rate based on a credit-adjusted secured borrowing rate