Company: DAWN
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026654
Chunk: 264

Company: Day One Biopharmaceuticals, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 264
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 and administrative expenses 

Selling, general and administrative expenses increased $39.9 million, from $75.6 million for the year ended December 31, 2023 to $115.5 million for the year ended December 31, 2024. The increase in selling, general and administrative expenses was primarily due to an increase of $21.4 million in personnel related expenses driven by headcount growth, an increase of $13.1 million in professional services driven by commercial launch activities, and an increase of $5.4 million in other selling, general and administrative costs.

Income tax expense

Income tax expense for the year ended December 31, 2024, was $7.1 million resulting in an effective tax rate of (8.1)% compared to 0.0% in 2023. The increase in income tax expense (and resulting negative 8.1% effective tax rate) is driven primarily by current US federal and state income tax expense recognized after considering available net operating losses and credits while we continue to maintain a valuation allowance against the full amount of our net deferred tax assets. We did not record an income tax provision for the year ended December 31, 2023 as it generated tax losses during the period.

Liquidity and Capital Resources 

Sources of liquidity 

In July 2024, we entered into a securities purchase agreement with certain institutional and accredited investors, or the PIPE Investors, pursuant to which we agreed to sell and issue to the PIPE Investors in a private placement, or the Private Placement, an aggregate of (i) 10,551,718 shares of our common stock at a purchase price of $14.50 per share and (ii) 1,517,241 pre-funded warrants, or the Pre-Funded Warrants, to purchase up to an aggregate of 1,517,241 shares of our common stock, or the Warrant Shares, at a purchase price of $14.4999 per Pre-Funded Warrant. Each Pre-Funded Warrant has an exercise price of $0.0001 per Warrant Share. The Pre-Funded Warrants are exercisable at any time after their original issuance and will not expire. The Private Placement closed on August 1, 2024 and we received net proceeds of $166.5 million, after deducting placement agent fees, offering costs and other expenses, of which $145.6 million was allocated to the common stock and $20.9 million was allocated to the Pre-Funded W