Company: DNLI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001714899-25-000066
Chunk: 189

Company: Denali Therapeutics Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 189
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 process for accounting for Accrued and Prepaid R&D Costs, including management’s controls over completeness and accuracy of data used in determining these costs as well as management’s process for estimating work completed under the service agreements. To test the Accrued and Prepaid R&D Costs, our audit procedures included, among others, i) confirming the completeness of the terms and conditions of significant R&D service agreements directly with the vendors; ii) testing the completeness and accuracy of the underlying inputs used in the Company’s analyses through verification of significant inputs, such as costs incurred and invoices paid, to the terms and conditions of the underlying agreements and information from the Company’s internal personnel and vendors; iii) testing significant assumptions used in estimating costs of services provided including meeting with personnel outside of the accounting department to discuss the basis for such assumptions; and iv) performing a hindsight analysis of invoices received subsequent to the balance sheet date.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2015.

San Mateo, California

February 27, 2025

136

Table of Contents

Denali Therapeutics Inc.

Consolidated Balance Sheets

(In thousands, except share amounts)

December 31, 2024December 31, 2023AssetsCurrent assets:Cash and cash equivalents$174,960 $127,106 Short-term marketable securities657,371 907,405 Prepaid expenses and other current assets32,105 29,626 Total current assets864,436 1,064,137 Long-term marketable securities359,373 — Property and equipment, net55,236 45,589 Finance lease right-of-use asset47,533 — Operating lease right-of-use asset22,861 26,048 Other non-current assets24,741 18,143 Total assets$1,374,180 $1,153,917 Liabilities and stockholders’ equityCurrent liabilities:Accounts payable$11,137 $9,483 Accrued expenses and other current liabilities91,071 68,499 Total current liabilities102,208 77,982 Operating lease liability, less current portion36,673 44,981 Finance lease liability, less current portion5,615 — Total liabilities144,496 122,963 Commitments and contingencies (Note 7)Stockholders’ equity:Convertible preferred stock, $0.01 par value; 40,000