Company: DVAX
Filing Date: 2025-04-03
Form Type: PREC14A
Source: 0000930413-25-001153
Chunk: 125

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-04-03
Form: PREC14A
Chunk 125
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ix B

Non-GAAP Financial Measures</div>

To supplement our financial results presented
on a GAAP basis, we have included information about adjusted EBITDA, a non-GAAP financial measure. We believe the presentation
of this non-GAAP financial measure, when viewed with our results under GAAP and the accompanying reconciliation, provide analysts,
investors and other third parties with insights into how we evaluate normal operational activities, including our ability to generate
cash from operations, on a comparable year-over-year basis and manage our budgeting and forecasting.

Adjusted EBITDA

Adjusted EBITDA 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. 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