Company: DVAX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049536
Chunk: 261

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 261
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 the first quarter of 2025, we recorded an allowance for doubtful accounts of approximately $11.0 million relating to the contract asset recognized for Clover. This charge is reflected in our results for the nine months ended September 30, 2025. 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 EndedSeptember 30,Increase (Decrease) from 2024 to 2025Nine Months EndedSeptember 30,Increase (Decrease) from 2024 to 202520252024$%20252024$%Interest income$6,593 $9,382 $(2,789)(30%)$21,130 $28,050 $(6,920)(25%)Interest expense$(1,643)$(1,699)$56 3%$(4,976)$(5,090)$114 2%Sublease income$2,225 $2,205 $20 1%$6,677 $2,808 $3,869 138 %Loss on debt extinguishment$— $— $— —%$(82,095)$— $82,095 100 %Other (loss) income$(27)$(152)$179 100%$(1,046)$(52)$(994)(100)%

Interest income decreased due to lower balances and average yield in our marketable securities portfolio for the three and nine months ended September 30, 2025.

The increase in sublease income for the nine months ended September 30, 2025 was primarily due to