Company: DNLI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001714899-25-000105
Chunk: 7

Company: Denali Therapeutics Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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, 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.

27

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.

28

Results of Operations

Comparison of the three months ended March 31, 2025 and 2024 

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

Three Months Ended March 31,Change20252024$%Operating expenses:Research and development$116,227 $107,016 $9,211 9 %General and administrative29,353 25,236 4,117 16 Total operating expenses145,580 132,252 13,328 10 Gain from divestiture of small molecule programs— 14,537 (14,537)*Loss from operations(145,580)(117,715)(27,865)24 Interest and other income, net12,610 15,913 (3,303)(21)Net loss$(132,970)$(101,802)$(31,168)31 %

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*Percentage is not meaningful.

Research and development expenses. Research and development expenses were $116.2 million and $107.0 million for the three months ended March 31, 2025 and 2024, respectively.

The following table provides a breakdown of our research and development expenses by category (in thousands):

Three Months Ended March 31,Change20252024$%External research and development expenses