Company: DVAX
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001029142-25-000049
Chunk: 133

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 133
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We expect our selling, general, and administrative expenses to remain consistent in future periods as we continue to support the overall growth of our business.

Bad Debt Expense

We did not record bad debt expense during the year ended December 31, 2024. We recorded $12.3 million of bad debt expense during the year ended December 31, 2023 in connection with the allowance for doubtful accounts of $12.3 million recorded with respect to outstanding accounts receivable from Bio E and relating to CpG 1018 Materials delivered under the Bio E Supply Agreement and CEPI Agreement. The allowance for doubtful accounts was determined by assessing changes in Bio E’s credit risk, contemplation of ongoing negotiations relating to Bio E Amendment No. 3, and Bio E's dependence on cash collections from the Government of India, which have been delayed significantly by the Government of India.

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.

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

Year Ended December 31,Increase (Decrease) from 2023 to 202420242023$%Interest income$36,464 $31,993 $4,471 14 %Interest expense$(6,794)$(6,757)$37 1 %Sublease income$5,014 $7,577 $(2,563)(34 %)Other$293 $(152)$445 (293 %)

•Interest income increased due to higher yields and balances in our marketable securities portfolio.

•The decrease in sublease income is primarily due to the recognition of a net loss of $3.5 million during the first quarter of 2024 in connection with a sublease termination, offset by sublease income of $8.5 million during the year ended December 31, 2024.

Income Taxes

Our income tax expense and effective income tax rate were as follows (in thousands, except for percentages):

Year Ended December 31,Increase (Decrease) from 2023 to 202420242023$%Income tax expense$3,546 $2,022 $1,524 75 %Effective income tax rate11