Company: DVAX
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001029142-25-000071
Chunk: 304

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 304
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 the GAVI of its advanced purchase agreement option with Clover on April 24, 2025, Clover’s recent write-down of the carrying value of its CpG 1018 Materials, and Clover's liquidity position, as reflected by cash and cash equivalents reported in Clover’s audited consolidated statement of financial position as of December 31, 2024.

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. Loss on debt extinguishment is a one-time charge recognized in connection with the Refinancing Transaction. 

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

Three Months EndedMarch 31,Increase (Decrease) from 2024 to 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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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