Company: DNLI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001714899-25-000105
Chunk: 111

Company: Denali Therapeutics Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 111
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 2018, the Company entered into an operating lease for its corporate headquarters in South San Francisco (the "Headquarters Lease"). In April 2023, the Company entered into a finance lease for its clinical manufacturing site in Salt Lake City (the "SLC Lease"). Both leases are further described in Note 7, "Commitments and Contingencies," to the consolidated financial statements in the Company's 2024 Annual Report on Form 10-K. Within the total ROU assets for the SLC Lease, the Company recorded assets of $44.3 million and $41.6 million as of March 31, 2025 and December 31, 2024, respectively, which were purchased by the Company but are considered to be owned by the landlord. The current finance lease liability is included in other accrued costs and current liabilities in the Condensed Consolidated Balance Sheet as of March 31, 2025.There were no changes to the terms of the leases recognized under ASC 842 during the three months ended March 31, 2025 or 2024.Operating lease costs, excluding variable lease costs, were $1.9 million and $2.0 million for the three months ended March 31, 2025 and 2024, respectively. Variable lease costs related to the operating lease were $1.4 million and $0.9 million for the three months ended March 31, 2025 and 2024, respectively. Finance lease costs representing amortization of ROU assets and interest on lease liability were $0.9 million and $0.2 million, respectively, for the three months ended March 31, 2025. There was no finance lease costs for the three months ended March 31, 2024. The following tables contain a summary of other information pertaining to the Company’s leases for the periods presented (in thousands):Three Months Ended March 31,20252024Operating cash flows from operating lease$2,885 $2,793 As of March 31,20252024Weighted-average remaining lease term (in years):Operating lease4.1 years5.1 yearsFinance lease14.0 years—Weighted-average discount rate applied (%):Operating lease9.0%9.0%Finance lease13.7%—%

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The following table reconciles the undiscounted cash flows for the next five years and total of the remaining years to the operating and finance lease liabilities recorded in the Condensed Consolidated Balance Sheet