Company: DVAX
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001029142-25-000071
Chunk: 392

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 392
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202520252024$%Interest income$7,739 $9,468 $(1,729)(18 %)Interest expense$(1,692)$(1,695)$(3)1 %Sublease income (expense)$2,226 $(1,602)$3,828 (239 %)Loss on debt extinguishment$(82,095)$— $(82,095)100 %Other (loss) income$(423)$101 $(524)100 %

Interest income decreased due to lower average yields and balances in our marketable securities portfolio for the three months ended March 31, 2025.

We recognized $2.2 million of sublease income and $1.6 million in sublease expense during the three months ended March 31, 2025 and 2024, respectively. The sublease expense in the first quarter of 2024 was primarily driven by the recognition of a net loss of $3.5 million in connection with a sublease termination, partially offset by sublease income of $1.9 million. 

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Table of Contents

Loss on debt extinguishment, which represents the difference between the reacquisition price of the debt and the net carrying amount of the extinguished debt, of $82.1 million was recorded for the three months ended March 31, 2025, in connection with the Refinancing Transaction completed in March 2025. 

Income Taxes

We are subject to U.S. federal, state and foreign income taxes. For the three months ended March 31, 2025, we recorded a benefit from income taxes of approximately $1.8 million. For the three months ended March 31, 2024, we recorded a benefit from income taxes of approximately $2.8 million. Our effective tax rate was approximately 1.8% for the three months ended March 31, 2025. Our effective tax rate was approximately 24.2% for the three months ended March 31, 2024. For the three months ended March 31, 2025, the primary difference between the effective tax rate and the federal statutory rate is due to the benefit of net operating losses utilized during the periods and the full valuation allowance we established on our federal, state, and certain foreign deferred tax assets. For the three months ended March 31, 2024, the primary difference between the effective tax rate and the federal statutory rate is due to the benefit of net operating losses utilized