Company: DNLI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001714899-25-000193
Chunk: 212

Company: Denali Therapeutics Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 212
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 such as salaries, benefits, travel and stock-based compensation expense, expenses for outside professional services, pre-commercialization activities, and allocated expenses. Outside professional services consist of legal, accounting and audit services and other consulting fees. Allocated expenses consist of rent, depreciation and other expenses related to our office and research and development facility not otherwise included in research and development expenses. We expect to increase our administrative headcount as we prepare for commercialization of Tividenofusp alfa (DNL310, ETV:IDS) and advance our other product candidates through clinical development, which will increase our general and administrative expenses.

Gain from divestiture of small molecule programs

The gain from the divestiture of small molecule programs consists entirely of the non-cash gain associated with the divestiture of assets associated with select preclinical small molecule programs, including specified intellectual property, tangible assets and equipment used to conduct early-stage small molecule drug discovery from the Company, in exchange for equity consideration.

28

Interest and Other Income, Net 

Interest and other income, net, consists primarily of interest income, investment income earned on our cash, cash equivalents, and marketable securities, and sublease income, as well as an offset for interest expense on our finance lease liability.

29

Results of Operations

Comparison of the three and nine months ended September 30, 2025 and 2024 

The following table sets forth the significant components of our results of operations (in thousands):

Three Months Ended September 30,Change20252024$%Operating expenses:Research and development$101,950 $98,238 $3,712 4 %General and administrative35,484 24,949 10,535 42 Total operating expenses137,434 123,187 14,247 12 Loss from operations(137,434)(123,187)(14,247)12 Interest and other income, net10,532 15,995 (5,463)(34)Net loss$(126,902)$(107,192)$(19,710)18 %

Nine Months Ended September 30, 2025Change20252024$%Operating expenses:Research and development$320,873 $296,653 $24,220 8 %General and administrative97,104 75,379 21,725 29 Total operating expenses417,977 372,032 45,945 12 Gain from divestiture of small molecule programs—