Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 265

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 265
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   |    818 |
| Other expense                          |     |              |  1,454 |     |   |    428 |
| Total research and development expense |     | $            | 48,929 |     | $ | 32,662 |

Research and development expenses for the year ended December 31, 2023, were $48.9 million, compared to $32.7 million for the year ended December 31, 2022. The $16.2 million increase was primarily driven by a $7.0 million increase in clinical development expenses with $5.5 million of the $7.0 million increase related to the PRECISION1 trial, $4.5 million in expenses related to headcount, consultants, and other expenses, and $4.7 million related to clinical drug product manufacturing. Cost of Goods Sold Cost of goods sold for the year ended December 31, 2023 and 2022 was $2.8 million and $1.3 million, respectively. This increase is primarily driven by royalties incurred on product sold. Impairment of Acquired Contract Intangible Asset During the year ended December 31, 2022, we recorded a $3.7 million impairment charge to reduce the carrying value of the intangible asset to its fair value of zero, based on a formal notice of termination we received on April 25, 2022 from Gossamer for the Gossamer License Agreement (as defined in Note 5 to the consolidated financial statements). The Gossamer License Agreement terminated effective July 24, 2022. Based on the Notice of Termination, we fully impaired the intangible asset during the nine months ended September 30, 2022, as the Gossamer License Agreement is the sole underlying asset. In connection with the termination of the Gossamer License Agreement, the CVR Agreement (as defined in Note 5 to the consolidated financial statements), pursuant to which the contingent value rights (“CVRs”) were issued to legacy holders of common stock of Aerpio immediately prior to the Reverse Merger, automatically terminated in accordance with its terms and the CVRs were automatically cancelled and forfeited without any consideration or payment, in each case effective July 24, 2022. Other Income (Expense), Net The following table sets forth our other income, net:

|                         |     | Year Ended   
 December 31, |  2023 |   |     |   |  2022 |