Company: DVAX
Filing Date: 2025-05-07
Form Type: DEFA14A
Source: 0000930413-25-001671
Chunk: 7

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-05-07
Form: DEFA14A
Chunk 7
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 ongoing operations, including loss on debt extinguishment and proxy contest costs. Adjusted EBITDA, as used by us,
may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

There are several limitations related to the use of adjusted
EBITDA rather than net income or loss, which is the nearest GAAP equivalent, such as:

| • | adjusted EBITDA excludes depreciation and amortization, and, although these are non-cash expenses, the assets being depreciated 
 or amortized may have to be replaced in the future, the cash requirements for which are not reflected in adjusted EBITDA;       |

| • | adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; |

| • | adjusted EBITDA does not reflect the benefit from or provision for income taxes or the cash requirements to pay taxes; |

| • | adjusted EBITDA does not reflect historical cash expenditures or future requirements for capital expenditures or contractual 
 commitments;                                                                                                                 |

| • | we exclude stock-based compensation expense from adjusted EBITDA although: (i) it has been, and will continue to be for the       
 foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy; and (ii) 
 if we did not pay out a                                                                                                           |

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portion of our compensation in the form of stock-based
compensation, the cash salary expense included in operating expenses would be higher, which would affect our cash position;

| • | we may exclude other expenses, from time to time, that are episodic in nature and do not directly correlate to the cost of 
 operating our business on an ongoing basis.                                                                                |

The Company has not provided a reconciliation of its full-year
2025 guidance for Adjusted EBITDA to the most directly comparable forward-looking GAAP measures because the Company is unable to
predict, without unreasonable efforts, the timing and amount of items that would be included in such a reconciliation, including,
but not limited to, stock-based compensation expense, income tax expense or provision for income taxes. These items are uncertain
and depend on various factors that are outside of the Company’s control or cannot be reasonably predicted. While the Company
is unable to address the probable significance of these items, they could have a material impact on GAAP net income for the guidance
period. A reconciliation of Adjusted EBITDA would imply a degree of precision and certainty as to