Company: DVAX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001029142-25-000117
Chunk: 268

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 268
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-in-process27,837 14,569 Finished goods11,095 12,846 Total inventories$75,687 $70,054 During the six months ended June 30, 2025, we recorded approximately $3.4 million in Cost of sales - product primarily related to yield loss during the production process. During the six months ended June 30, 2024, we recorded approximately $1.3 million in Cost of sales - product related to one manufacturing batch that did not meet approved release specifications.

5. Commitments and Contingencies 

LeasesWe lease our facilities in Emeryville, California and Düsseldorf, Germany. We lease and sublease certain manufacturing and office space with lease terms ranging from 3 to 12 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include options to renew or extend the lease for two successive five-year terms. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as we did not consider the exercise of these options to be reasonably certain.Our lease-related amounts are presented below (in thousands):  Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Operating lease expense$1,436 $1,496 $2,863 $2,912 Cash paid for lease liabilities (1)$1,803 $1,904 $3,660 $3,778 Sublease income (2)$2,226 $2,205 $4,452 $603 (1)Cash paid for amounts included in the measurement of lease liabilities is included in change in lease liabilities in our condensed consolidated statement of cash flows. (2)Sublease income is included net within “Other income (expense)” in our condensed consolidated statements of operations. Rent received from our subtenant in excess of rent paid to the landlord is shared by paying the landlord 50% of the excess rent. The excess rent is considered a variable lease payment and the total estimated payments are being recognized as additional rent expense on a straight-line basis.The balance sheet classification of our operating lease liabilities was as follows (in thousands): June 30, 2025December 31, 2024Operating lease liabilities:Current portion of lease liabilities (included in other current liabilities)$4,067 $4,175 Long-term portion of lease liabilities24