Company: DNLI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001714899-25-000193
Chunk: 417

Company: Denali Therapeutics Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 417
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 14,194 Net cost sharing payments (reimbursements)$2,171 $3,546 $7,969 $9,709 _________________________________(1)Cost sharing reimbursements of $1.9 million and $1.5 million were recorded as a receivable within prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively. (2)Cost sharing payments due to Biogen of $4.1 million and $2.5 million were recorded within accounts payable on the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively.

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6.     Commitments and Contingencies

Lease ObligationsIn May 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. Upon completion of construction in the second quarter of 2025, the Company recorded total assets of approximately $47.4 million within the Finance lease ROU asset, 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 September 30, 2025.There were no changes to the terms of the leases recognized under ASC 842 during the three and nine months ended September 30, 2025 or 2024.Operating lease costs, excluding variable lease costs, were $1.9 million and $5.7 million for the three and nine months ended September 30, 2025, respectively, and $1.9 million and $5.8 million for the three and nine months ended September 30, 2024, respectively. Variable lease costs related to the operating lease were $1.5 million and $4.1 million for the three and nine months ended September 30, 2025, respectively, and $1.6 million and $3.9 million for the three and nine months ended September 30, 202