Company: DVAX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001029142-25-000117
Chunk: 302

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 302
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 14%     

Selling, general and administrative expenses increased by $8.7 million and $12.3 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increase was primarily driven by higher professional consulting and legal fees of $12.5 million related to our successful proxy contest campaign, partially offset by a reduction in compensation and related personnel costs.

Bad Debt Expense

During the first quarter of 2025, we recorded an allowance for doubtful accounts of approximately $11.0 million relating to the contract asset recognized for Clover. This charge is reflected in our results for the six months ended June 30, 2025. This determination was based on our evaluation of credit risk associated with Clover, driven by the formal termination by the GAVI of its advanced purchase agreement option with Clover on April 24, 2025, Clover’s recent write-down of the carrying value of its CpG 1018 Materials, and Clover's liquidity position, as reflected by cash and cash equivalents reported in Clover’s audited consolidated statement of financial position as of December 31, 2024.

Other Income (Expense)

Interest income is reported net of amortization of premiums and discounts on marketable securities and includes realized gains on investments. Interest expense includes the stated interest and accretion of discount of our Convertible Notes. Sublease income is recognized in connection with our sublease of office and laboratory space. Loss on debt extinguishment is a one-time charge recognized in connection with the Refinancing Transaction. 

33

The following is a summary of our other income (expense) (in thousands, except for percentages):

Three Months EndedJune 30,Increase (Decrease) from 2024 to 2025Six Months EndedJune 30,Increase (Decrease) from 2025 to 202420252024$%20252024$%Interest income$6,798 $9,201 $(2,403)(26%)$14,537 $18,668 $(4,131)(22%)Interest expense$(1,641)$(1,698)$(57)(3%)$(3,333)$(3,393)$(60)(2%)Sublease income$2,226 $2,205 $21 1%$4,452 $603 $3,849 638 %Loss on debt extinguishment$— $— $— —