Company: DNLI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001714899-25-000193
Chunk: 200

Company: Denali Therapeutics Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 200
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 which represents the per share price for the common stock less the $0.01 exercise price. The private placement closed on February 29, 2024, at which time the Company received aggregate net proceeds of approximately $499.3 million, after deducting issuance costs of approximately $0.5 million.The Pre-Funded Warrants were classified as a component of permanent equity in the Company’s consolidated balance sheet as they are freestanding financial instruments that are immediately exercisable, do not embody an obligation for the Company to repurchase its shares and permit the holders to receive a fixed number of shares of common stock upon exercise. All of the Pre-Funded Warrants issued in the private placement were outstanding as of September 30, 2025.

8.    Stock-Based Awards

The Company has issued stock-based awards from various equity incentive and stock purchase plans, as more fully described in Note 9, "Stock-Based Awards" to the consolidated financial statements in the Company's 2024 Annual Report on Form 10-K.Stock Option ActivityThe following table summarizes stock option activity for the nine months ended September 30, 2025:Number of OptionsWeighted-Average Exercise PriceBalance at December 31, 202418,660,150 $25.99 Granted4,800,129 19.70 Exercised(700,706)1.68 Forfeited(472,987)26.27 Expired(844,371)0.68 Balance at September 30, 202521,442,215 $26.37 Vested and expected to vest at September 30, 202521,442,215 $26.37 Exercisable at September 30, 202513,292,134 $29.41 

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The estimated fair value of stock options granted to employees were calculated using the Black-Scholes option-pricing model using the following assumptions:Nine Months Ended September 30,20252024Expected term (in years)5.50- 6.085.50 - 6.08Volatility64.8% - 68.7%64.5% - 66.0%Risk-free interest rate3.6% - 4.5%3.7% - 4.5%Dividend yield——Restricted Stock ActivityThe following table summarizes restricted stock unit ("RSU") activity for the nine months ended September 30, 2025:Number of RSU shares