Company: DVAX
Filing Date: 2025-05-12
Form Type: DEFA14A
Source: 0000930413-25-001695
Chunk: 7

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-05-12
Form: DEFA14A
Chunk 7
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DA is a non-GAAP financial measure that represents GAAP net
income or loss adjusted to exclude interest expense, interest income, the benefit from or provision for income taxes, depreciation, amortization,
stock-based compensation, and other adjustments to reflect changes that occur in our business but do not represent 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 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