Company: DVAX
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001029142-25-000071
Chunk: 256

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 256
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Outside services16,482 13,479 3,003 22 %Facility costs3,319 3,007 312 10 %Non-cash stock-based compensation9,949 8,920 1,029 12 %Total selling, general and administrative$47,657 $44,065 $3,592 8 %     

Selling, general and administrative expenses increased by $3.6 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase is driven by professional consulting and legal expenses of $3.0 million incurred in the first quarter of 2025 primarily related to our ongoing proxy contest, and a slight increase of $0.3 million in cash and non-cash compensation costs primarily due to continued investments in personnel across commercial and administrative functions to support HEPLISAV-B and pipeline growth. We expect to incur additional costs related to public relations, printing and legal fees in connection with our ongoing proxy contest.

Bad Debt Expense

During the three months ended March 31, 2025, we recorded an allowance for doubtful accounts of approximately $11.0 million relating to the contract asset recognized for Clover. This determination was based on our evaluation of credit risk associated with Clover, driven by the formal termination by 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)