$DNLI

Denali Therapeutics Inc.

CIK:0001714899|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 3,604	$ 0	$ 3,604	$ 0
Operating expenses:
Cost of goods sold	93	0	93	0
Research and development	97,019	102,696	200,865	218,923
Selling, general and administrative	36,283	32,267	69,794	61,620
Intangible asset amortization	750	0	750	0
Total operating expenses	134,145	134,963	271,502	280,543
Loss from operations	(130,541)	(134,963)	(267,898)	(280,543)
Interest and other income, net	2,988	10,844	11,898	23,454
Net loss	(127,553)	(124,119)	(256,000)	(257,089)
Other comprehensive loss:
Net unrealized loss on marketable securities, net of tax	(1,287)	(1,098)	(2,651)	(1,081)
Comprehensive loss	$ (128,840)	$ (125,217)	$ (258,651)	$ (258,170)
Net loss per share, basic (usd per share)	$ (0.68)	$ (0.72)	$ (1.37)	$ (1.50)
Net loss per share, diluted (usd per share)	$ (0.68)	$ (0.72)	$ (1.37)	$ (1.50)
Weighted average number of shares outstanding, basic (in shares)	187,314,501	171,449,847	186,977,612	171,336,568
Weighted average number of shares outstanding, diluted (in shares)	187,314,501	171,449,847	186,977,612	171,336,568

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net loss	$ (256,000)	$ (257,089)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,414	5,370
Stock–based compensation expense	46,002	50,547
Net accretion of discounts on marketable securities	(2,704)	(6,585)
Non-cash adjustment to operating lease expense	(2,353)	(2,161)
Right-of-use asset amortization for finance lease	1,831	1,798
Non-cash interest expense related to revenue participation right liability	5,941	0
Other non-cash items	(223)	0
Changes in operating assets and liabilities:
Accounts receivable, net	(3,927)	0
Inventory	(4,139)	0
Prepaid expenses and other current assets	(2,613)	(3,650)
Other non-current assets	(304)	3,022
Accounts payable	4,102	(43)
Accruals and other current liabilities	(19,107)	(14,151)
Deferred research and development funding liability	(1,126)	16,176
Net cash used in operating activities	(228,206)	(206,766)
Investing activities
Purchases of marketable securities	(394,579)	(137,926)
Maturities and sales of marketable securities	417,032	323,965
Purchases of property and equipment	(3,271)	(9,356)
Cash paid to acquire finite-lived intangible asset	(28,800)	0
Net cash provided by (used in) investing activities	(9,618)	176,683
Financing activities
Proceeds from underwriter exercising option to purchase common stock, net of issuance costs	12,366	0
Proceeds from sale of revenue participation right	200,000	0
Proceeds from exercise of awards under equity incentive plans	21,700	4,652
Payments for finance lease right-of-use asset	(38)	(6,791)
Net cash provided by (used in) financing activities	234,028	(2,139)
Net decrease in cash, cash equivalents and restricted cash	(3,796)	(32,222)
Cash, cash equivalents and restricted cash at beginning of period	208,432	176,535
Cash, cash equivalents and restricted cash at end of period	204,636	144,313
Supplemental disclosures of cash flow information
Payment due on intangible asset acquired	$ 7,200	$ 0

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 201,530	$ 205,326
Short-term marketable securities	508,941	662,553
Accounts receivable, net	3,927	0
Inventory	4,139	0
Prepaid expenses and other current assets	35,390	32,779
Total current assets	753,927	900,658
Long-term marketable securities	229,534	98,322
Property and equipment, net	49,926	52,402
Finance lease right-of-use asset	46,700	48,531
Operating lease right-of-use asset	16,793	19,002
Intangible asset, net	35,250	0
Other non-current assets	25,825	25,939
Total assets	1,157,955	1,144,854
Current liabilities:
Accounts payable	11,807	505
Other accrued costs and current liabilities	78,276	97,846
Total current liabilities	90,083	98,351
Operating lease liability, less current portion	22,026	27,210
Finance lease liability, less current portion	5,479	5,532
Liability related to the revenue participation right agreement	205,189	0
Total liabilities	322,777	131,093
Commitments and contingencies (Note 10)
Stockholders' equity:
Convertible preferred stock, $0.01 par value; 40,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025	0	0
Common stock, $0.01 par value; 400,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 159,755,526 shares and 156,182,177 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	1,924	1,888
Additional paid-in capital	3,142,747	3,062,715
Accumulated other comprehensive income (loss)	(1,969)	682
Accumulated deficit	(2,307,524)	(2,051,524)
Total stockholders' equity	835,178	1,013,761
Total liabilities and stockholders’ equity	$ 1,157,955	$ 1,144,854