10-Q
0001029142falseQ1falsefalse--12-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2022-01-012022-03-310001029142dvax:OtherRevenueMember2022-01-012022-03-310001029142us-gaap:SalesRevenueNetMemberdvax:SecondLargestCustomerMemberus-gaap:ProductConcentrationRiskMemberdvax:HEPLISAVBMember2022-01-012022-03-310001029142us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:WarrantMember2022-01-012022-03-310001029142us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001029142dvax:CoalitionForEpidemicPreparednessInnovationsMember2022-03-310001029142us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310001029142us-gaap:CashAndCashEquivalentsMember2022-01-012022-03-3100010291422022-03-310001029142dvax:ZhejiangCloverBiopharmaceuticalsIncAndCloverHongKongIncMemberdvax:SupplyAgreementMember2022-03-310001029142us-gaap:IPOMember2019-08-012019-08-310001029142dvax:TwentySeventeenAtTheMarketAgreementMember2022-01-012022-03-310001029142us-gaap:ConvertiblePreferredStockMember2021-01-012021-03-310001029142dvax:CappedCallsMember2022-01-012022-03-310001029142dvax:SupplyAgreementMemberdvax:MedigenVaccineBiologicsMember2022-03-310001029142stpr:CAdvax:PowellStreetSubleaseMember2021-01-012021-06-300001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142dvax:ThirdLargestCollaborationPartnerMemberus-gaap:SalesRevenueNetMemberdvax:CpG1018Memberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001029142dvax:OtherRevenueMembercountry:US2022-01-012022-03-310001029142us-gaap:CashAndCashEquivalentsMemberus-gaap:CorporateDebtSecuritiesMember2022-03-310001029142dvax:SupplyAgreementMemberdvax:ValnevaSEMember2021-01-012021-03-310001029142dvax:DebtInstrumentConversionPeriodTwoMemberdvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2022-01-012022-03-310001029142us-gaap:NonUsMember2021-01-012021-03-310001029142us-gaap:SalesRevenueNetMemberdvax:ThirdLargestCustomerMemberus-gaap:ProductConcentrationRiskMemberdvax:HEPLISAVBMember2021-01-012021-03-310001029142us-gaap:AvailableforsaleSecuritiesMember2021-01-012021-12-310001029142us-gaap:RetainedEarningsMember2022-03-310001029142us-gaap:WarrantMember2022-01-012022-03-310001029142dvax:HEPLISAVBMember2021-01-012021-03-310001029142us-gaap:SalesRevenueNetMemberdvax:LargestCustomerMemberdvax:HEPLISAVBMemberus-gaap:ProductConcentrationRiskMember2021-01-012021-03-310001029142us-gaap:CashMemberus-gaap:CashAndCashEquivalentsMember2022-03-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142country:USdvax:HEPLISAVBMember2022-01-012022-03-310001029142us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001029142us-gaap:AdditionalPaidInCapitalMember2021-03-310001029142dvax:TwoThousandAndEighteenEquityIncentivePlanMember2022-03-310001029142us-gaap:NonUsMemberdvax:CpG1018Member2021-01-012021-03-310001029142country:USus-gaap:ProductMember2021-01-012021-03-310001029142dvax:CpG1018Memberdvax:LongTermDeferredRevenueMember2022-01-012022-03-310001029142dvax:SupplyAgreementMemberdvax:BiologicalELimitedMember2022-01-012022-03-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2021-01-012021-12-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2021-12-310001029142dvax:SupplyAgreementMemberdvax:ValnevaSEMember2022-03-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100010291422021-01-012021-12-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:NonUsMemberdvax:OtherRevenueMember2022-01-012022-03-310001029142dvax:ZhejiangCloverBiopharmaceuticalsIncAndCloverHongKongIncMemberdvax:SupplyAgreementMember2021-12-310001029142us-gaap:SalesRevenueNetMemberdvax:CpG1018Memberdvax:LargestCollaborationPartnerMemberus-gaap:ProductConcentrationRiskMember2021-01-012021-03-310001029142dvax:CoalitionForEpidemicPreparednessInnovationsMember2021-12-310001029142us-gaap:AdditionalPaidInCapitalMember2021-12-310001029142us-gaap:NonUsMember2022-01-012022-03-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142srt:MaximumMemberus-gaap:IPOMember2019-08-310001029142us-gaap:CommonStockMember2021-08-310001029142us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-03-310001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2021-12-310001029142us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:RetainedEarningsMember2021-01-012021-03-310001029142srt:MaximumMember2020-08-062020-08-060001029142us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001029142us-gaap:TradeAccountsReceivableMember2022-03-310001029142dvax:SymphonyDynamoHoldingsLlcMember2009-11-012009-11-300001029142us-gaap:WarrantMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-01-012021-03-310001029142us-gaap:CashAndCashEquivalentsMemberus-gaap:AvailableforsaleSecuritiesMember2021-12-310001029142dvax:CpG1018Memberdvax:LongTermDeferredRevenueMember2021-12-310001029142dvax:USDepartmentOfDefenseMember2022-01-012022-03-310001029142country:US2021-01-012021-03-310001029142us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100010291422019-08-012019-08-310001029142dvax:CappedCallsMember2022-03-310001029142us-gaap:RetainedEarningsMember2021-12-310001029142dvax:ValnevaSEMember2021-10-310001029142us-gaap:CashAndCashEquivalentsMember2022-03-310001029142us-gaap:OtherNonoperatingIncomeExpenseMemberstpr:CAdvax:HortonStreetSubleaseMember2022-01-012022-03-310001029142stpr:CAdvax:HortonStreetSubleaseMember2018-09-170001029142us-gaap:CashMemberus-gaap:CashAndCashEquivalentsMember2021-01-012021-12-310001029142dvax:SeriesBConvertiblePreferredStockMember2022-03-310001029142dvax:RevenueReserveAccrualsMemberdvax:HEPLISAVBMember2022-03-310001029142dvax:VestedMember2022-01-012022-03-310001029142us-gaap:AvailableforsaleSecuritiesMember2022-01-012022-03-310001029142dvax:SymphonyDynamoHoldingsLlcMember2009-11-300001029142us-gaap:CashAndCashEquivalentsMember2021-01-012021-12-310001029142dvax:HEPLISAVBMember2022-01-012022-03-310001029142dvax:SeriesBConvertiblePreferredStockMember2021-08-012021-08-310001029142us-gaap:SalesRevenueNetMemberdvax:CpG1018Memberdvax:LargestCollaborationPartnerMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001029142dvax:DusseldorfLeaseMembercountry:DE2021-09-012021-09-300001029142dvax:StockOptionsAndShareAwardsMember2022-01-012022-03-310001029142dvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2021-05-310001029142us-gaap:AvailableforsaleSecuritiesMember2021-12-310001029142us-gaap:ProductMember2022-01-012022-03-310001029142dvax:SupplyAgreementMemberdvax:MedigenVaccineBiologicsMember2022-01-012022-03-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100010291422022-01-012022-03-310001029142dvax:ZhejiangCloverBiopharmaceuticalsIncAndCloverHongKongIncMemberdvax:SupplyAgreementMember2022-01-012022-03-310001029142stpr:CAdvax:HortonStreetSubleaseMember2019-07-012019-07-310001029142us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001029142us-gaap:NonUsMemberus-gaap:ProductMember2021-01-012021-03-310001029142us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001029142dvax:OtherRevenuesMember2021-01-012021-03-310001029142us-gaap:SalesRevenueNetMemberdvax:CpG1018Memberdvax:SecondLargestCollaborationPartnerMemberus-gaap:ProductConcentrationRiskMember2021-01-012021-03-3100010291422021-03-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:SalesRevenueNetMemberdvax:SecondLargestCustomerMemberdvax:HEPLISAVBMemberus-gaap:ProductConcentrationRiskMember2021-01-012021-03-310001029142us-gaap:RetainedEarningsMember2020-12-310001029142us-gaap:CommonStockMember2020-12-310001029142us-gaap:CashAndCashEquivalentsMemberus-gaap:CorporateDebtSecuritiesMember2022-01-012022-03-310001029142dvax:CpG1018Member2022-01-012022-03-310001029142dvax:StockOptionsAndShareAwardsMember2021-01-012021-03-310001029142stpr:CAdvax:PowellStreetSubleaseMember2022-01-012022-03-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:WarrantMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142dvax:TwoThousandAndFourteenEmployeeStockPurchasePlanMember2022-03-310001029142dvax:ThirdLargestCollaborationPartnerMemberus-gaap:SalesRevenueNetMemberdvax:CpG1018Memberus-gaap:ProductConcentrationRiskMember2021-01-012021-03-310001029142us-gaap:RetainedEarningsMember2022-01-012022-03-310001029142dvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2021-05-012021-05-310001029142us-gaap:SalesRevenueNetMemberdvax:LargestCustomerMemberdvax:HEPLISAVBMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001029142dvax:CpG1018Member2021-12-310001029142dvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2021-03-310001029142us-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:RestrictedStockUnitsRSUMember2021-12-310001029142us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142dvax:LoanAgreementMember2021-05-012021-05-310001029142dvax:TrisalusLifeSciencesMember2020-08-012020-08-310001029142dvax:TrisalusLifeSciencesMember2021-09-012021-09-300001029142us-gaap:NonUsMemberus-gaap:ProductMember2022-01-012022-03-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2021-01-012021-12-310001029142dvax:PerformanceBasedRestrictedStockUnitsMember2022-01-012022-03-310001029142us-gaap:ConvertiblePreferredStockMember2022-01-012022-03-310001029142dvax:RevenueReserveAccrualsMemberdvax:HEPLISAVBMember2021-12-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142dvax:SupplyAgreementMemberdvax:BiologicalELimitedMember2022-03-3100010291422021-01-012021-03-310001029142us-gaap:CashAndCashEquivalentsMember2021-12-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-3100010291422021-12-310001029142dvax:DeutscheBankSecuritiesMember2022-03-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:CommonStockMember2022-03-310001029142dvax:HEPLISAVBMember2021-12-310001029142stpr:CAdvax:PowellStreetSubleaseMember2022-03-310001029142us-gaap:AdditionalPaidInCapitalMember2022-03-310001029142dvax:OtherRevenueMember2021-01-012021-03-310001029142us-gaap:AccountsReceivableMemberdvax:HEPLISAVBMember2022-03-310001029142dvax:ConvertibleOptionalSeniorNotesMember2021-05-310001029142dvax:SupplyAgreementMemberdvax:ValnevaSEMember2022-01-012022-03-310001029142dvax:CpG1018Member2021-01-012021-03-310001029142dvax:SeriesBConvertiblePreferredStockMember2019-08-012019-08-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:CommonStockMember2022-01-012022-03-310001029142us-gaap:CommonStockMember2021-03-310001029142dvax:HEPLISAVBMember2022-01-012022-03-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:AvailableforsaleSecuritiesMember2022-03-310001029142us-gaap:SalesRevenueNetMemberdvax:ThirdLargestCustomerMemberdvax:HEPLISAVBMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142dvax:DebtInstrumentConversionPeriodOneMemberdvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2022-01-012022-03-3100010291422020-12-310001029142dvax:ValnevaSEMember2022-03-310001029142dvax:DeutscheBankSecuritiesMember2004-12-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:CashAndCashEquivalentsMember2022-03-310001029142us-gaap:WarrantMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142dvax:SupplyAgreementMemberdvax:ValnevaSEMember2021-12-310001029142us-gaap:InventoriesMember2022-01-012022-03-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142srt:MaximumMember2022-01-012022-03-310001029142us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-310001029142dvax:CappedCallsMember2021-05-012021-05-310001029142stpr:CAdvax:PowellStreetSubleaseMember2019-07-310001029142us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:FairValueInputsLevel3Memberus-gaap:WarrantMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:CashAndCashEquivalentsMemberus-gaap:AvailableforsaleSecuritiesMember2022-03-310001029142us-gaap:AdditionalPaidInCapitalMember2020-12-310001029142us-gaap:PreferredStockMember2020-12-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142dvax:ReservationAgreementMemberdvax:CoalitionForEpidemicPreparednessInnovationsPartnersMember2021-05-030001029142us-gaap:CashAndCashEquivalentsMemberus-gaap:AvailableforsaleSecuritiesMember2022-01-012022-03-310001029142dvax:HortonStreetMasterLeaseMember2022-03-310001029142dvax:CpG1018Member2022-01-012022-03-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:RetainedEarningsMember2021-03-3100010291422019-08-310001029142country:USus-gaap:ProductMember2022-01-012022-03-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142country:USdvax:HEPLISAVBMember2021-01-012021-03-310001029142us-gaap:CommonStockMember2021-12-310001029142us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142dvax:PerformanceBasedRestrictedStockUnitsMember2021-12-310001029142dvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2022-01-012022-03-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2022-01-012022-03-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:MoneyMarketFundsMemberus-gaap:CashAndCashEquivalentsMember2021-01-012021-12-310001029142dvax:ReservationAgreementMemberdvax:CoalitionForEpidemicPreparednessInnovationsPartnersMember2021-05-022021-05-030001029142us-gaap:MoneyMarketFundsMemberus-gaap:CashAndCashEquivalentsMember2021-12-310001029142dvax:AssetPurchaseAgreementMemberdvax:TrisalusLifeSciencesMember2021-09-012021-09-300001029142us-gaap:TradeAccountsReceivableMember2021-12-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142stpr:CAdvax:PowellStreetSubleaseMember2019-07-012019-07-310001029142country:US2022-01-012022-03-310001029142us-gaap:NonUsMemberdvax:HEPLISAVBMember2022-01-012022-03-310001029142us-gaap:NonUsMemberdvax:CpG1018Member2022-01-012022-03-310001029142dvax:CoalitionForEpidemicPreparednessInnovationsMember2021-01-310001029142us-gaap:PreferredStockMember2021-12-310001029142dvax:RevenueReserveAccrualsMemberdvax:HEPLISAVBMember2022-01-012022-03-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2022-03-310001029142us-gaap:ProductMember2021-01-012021-03-310001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2021-01-012021-12-310001029142dvax:UnvestedMember2022-01-012022-03-310001029142dvax:SupplyAgreementMemberdvax:BiologicalELimitedMember2021-12-310001029142dvax:USDepartmentOfDefenseMember2021-09-012021-09-300001029142us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:AccountsReceivableMemberdvax:HEPLISAVBMember2022-01-012022-03-310001029142dvax:PerformanceBasedRestrictedStockUnitsMember2022-03-310001029142us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:CashAndCashEquivalentsMemberus-gaap:AvailableforsaleSecuritiesMember2021-01-012021-12-310001029142us-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2022-01-012022-03-310001029142us-gaap:SalesRevenueNetMemberdvax:CpG1018Memberdvax:SecondLargestCollaborationPartnerMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001029142dvax:CpG1018Member2022-03-310001029142us-gaap:OtherNonoperatingIncomeExpenseMemberstpr:CAdvax:HortonStreetSubleaseMember2021-01-012021-03-310001029142us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001029142us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001029142us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001029142dvax:Cpg1018AdjuvantInventoryMember2021-12-310001029142dvax:BainLifeSciencesMember2019-08-012019-08-310001029142us-gaap:RestrictedStockUnitsRSUMember2022-03-310001029142us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001029142us-gaap:CommonStockMember2021-01-012021-03-310001029142us-gaap:NonUsMemberdvax:OtherRevenueMember2021-01-012021-03-310001029142us-gaap:AccountsReceivableMemberdvax:HEPLISAVBMember2021-12-3100010291422022-05-020001029142us-gaap:USTreasurySecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2022-03-310001029142us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001029142us-gaap:PreferredStockMember2022-03-310001029142srt:MaximumMemberdvax:TwentySeventeenAtTheMarketAgreementMember2020-08-060001029142dvax:DebtInstrumentConversionPeriodTwoMembersrt:MaximumMemberdvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2022-01-012022-03-310001029142us-gaap:CostOfSalesMember2022-01-012022-03-310001029142us-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:WarrantMember2021-01-012021-03-310001029142us-gaap:PreferredStockMember2021-03-310001029142dvax:MarketBasedPerformanceStockUnitMember2022-01-012022-03-310001029142stpr:CAdvax:HortonStreetSubleaseMember2019-07-310001029142us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2021-12-310001029142dvax:SeriesBConvertiblePreferredStockMember2019-08-310001029142dvax:OtherRevenuesMember2022-01-012022-03-310001029142us-gaap:CostOfSalesMember2021-01-012021-03-310001029142us-gaap:CashMemberus-gaap:CashAndCashEquivalentsMember2021-12-310001029142us-gaap:FairValueInputsLevel1Memberus-gaap:WarrantMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001029142us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2022-03-310001029142dvax:Cpg1018AdjuvantInventoryMember2022-03-310001029142dvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2022-03-310001029142us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:CashMemberus-gaap:CashAndCashEquivalentsMember2022-01-012022-03-310001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:AvailableforsaleSecuritiesMember2022-01-012022-03-310001029142stpr:CAdvax:HortonStreetSubleaseMember2018-09-162018-09-170001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001029142us-gaap:InventoriesMember2021-01-012021-03-310001029142dvax:HEPLISAVBMember2022-03-310001029142us-gaap:FairValueInputsLevel2Member2022-03-310001029142dvax:DebtInstrumentConversionPeriodOneMembersrt:MaximumMemberdvax:ConvertibleSeniorNotesDueTwoThousandTwentySixMember2022-01-012022-03-31iso4217:EURxbrli:pureutr:sqftxbrli:sharesutr:Ddvax:Segmentiso4217:USDiso4217:USDxbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number: 001-34207

 

Dynavax Technologies Corporation

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

33-0728374

(State or other jurisdiction of
incorporation or organization)

 

(IRS Employer
Identification No.)

2100 Powell Street, Suite 900

Emeryville, CA 94608

(510) 848-5100

(Address, including Zip Code, and telephone number, including area code, of the registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading symbol(s):

Name of each exchange on which registered:

Common Stock, $0.001 par value

DVAX

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registration was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No

As of May 2, 2022, the registrant had outstanding 126,312,469 shares of common stock.

 

 


 

INDEX

DYNAVAX TECHNOLOGIES CORPORATION

 

 

Page No.

PART I FINANCIAL INFORMATION

 

 

Item 1.

Financial Statements (unaudited)

6

 

Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021

6

 

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2022 and 2021

7

 

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2022 and 2021

7

 

Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2022 and 2021

8

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021

9

 

Notes to Condensed Consolidated Financial Statements

10

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

37

Item 4.

Controls and Procedures

37

 

PART II OTHER INFORMATION

 

 

Item 1.

Legal Proceedings

38

Item 1A.

Risk Factors

38

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

61

Item 3.

Defaults upon Senior Securities

61

Item 4.

Mine Safety Disclosures

61

Item 5.

Other Information

61

Item 6.

Exhibits

62

 

SIGNATURES

64

 

 

2


 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to a number of risks and uncertainties. All statements that are not historical facts are forward-looking statements, including statements about the direct and indirect impact of the ongoing COVID-19 global pandemic on our business and operations, including sales of HEPLISAV-B®, our ability to successfully commercialize HEPLISAV-B, CpG 1018 adjuvant or any future product, our anticipated market opportunity and level of sales of HEPLISAV-B and CpG 1018 adjuvant, our ability to manufacture sufficient supply of HEPLISAV-B to meet future demand, our business, collaboration and regulatory strategy, our ability to successfully support the development, manufacture and commercialization of other vaccines containing our CpG 1018 adjuvant, including any current or potential vaccine or vaccine candidate for COVID-19 that stem from any of our collaborations, our ability to manufacture sufficient supply of CpG 1018 to meet potential future demand in connection with new vaccines, including COVID-19 vaccines, our ability to develop and expand our clinical research pipeline, our ability to meet regulatory requirements, uncertainty regarding our capital needs and future operating results and profitability, anticipated sources of funds, liquidity and cash needs, as well as our plans, objectives, strategies, expectations and intentions. These statements appear throughout this Quarterly Report on Form 10-Q and can be identified by the use of forward-looking language such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “future,” or “intend,” or the negative of these terms or other variations or comparable terminology.

Actual results may vary materially from those in our forward-looking statements as a result of various factors that are identified in “Item 1A—Risk Factors” and “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this document. No assurance can be given that the risk factors described in this Quarterly Report on Form 10-Q are all of the factors that could cause actual results to vary materially from the forward-looking statements. All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Readers should not place undue reliance on these forward-looking statements and are cautioned that any such forward-looking statements are not guarantees of future performance. We assume no obligation to update any forward-looking statements.

This Quarterly Report on Form 10-Q includes trademarks and registered trademarks of Dynavax Technologies Corporation. Products or service names of other companies mentioned in this Quarterly Report on Form 10-Q may be trademarks or registered trademarks of their respective owners. References herein to “we,” “our,” “us,” “Dynavax” or the “Company” refer to Dynavax Technologies Corporation and its subsidiaries.

 

 

3


 

RISK FACTOR SUMMARY

Below is a summary of material factors that make an investment in our securities speculative or risky. Importantly, this summary does not address all of the risks and uncertainties that we face. Additional discussion of the risks and uncertainties summarized in this risk factor summary, as well as other risks and uncertainties that we face, can be found in the more detailed discussion that follows this summary, and the below summary is qualified in its entirety by that more complete discussion of such risks and uncertainties. You should consider carefully the risks and uncertainties described herein as part of your evaluation of an investment in our securities:

HEPLISAV-B has been launched in the United States, and approved in the European Union, and there is significant competition in these marketplaces. Since this is our first marketed product, the timing of uptake and distribution efforts are unpredictable and there is a risk that we may not achieve and sustain commercial success for HEPLISAV-B.
Our business and operations have been and may continue to be adversely affected by the ongoing COVID-19 global pandemic. We have entered into collaborative relationships to develop vaccines utilizing our CpG 1018 adjuvant, including collaborations to develop vaccines for COVID-19. These collaborations may not be successful. If the combination of patents, trade secrets and other proprietary rights that we rely on to protect our intellectual property rights in CpG 1018 adjuvant or otherwise are inadequate, we may be unable to realize recurring commercial benefit from the development of any vaccines containing CpG 1018 adjuvant.
Our financial results may vary significantly from quarter to quarter or may fall below the expectations of investors or securities analysts, each of which may adversely affect our stock price.
We face uncertainty regarding coverage, pricing and reimbursement and the practices of third-party payors, which may make it difficult or impossible to sell certain of our products or product candidates on commercially reasonable terms.
We are subject to ongoing United States Food and Drug Administration (“FDA”) and European Medicines Agency (“EMA”) post-marketing obligations concerning HEPLISAV-B, which may result in significant additional expense, and we may be subject to penalties if we fail to comply with regulatory requirements or experience unanticipated regulatory issues with HEPLISAV-B.
If HEPLISAV-B or any products we develop are not accepted by the market or if regulatory agencies limit our labeling indications, require labeling content that diminishes market uptake of HEPLISAV-B or any other products we develop, or limit our marketing claims, we may be unable to generate significant revenues, if any.
Many of our competitors have greater financial resources and expertise than we do. If we are unable to successfully compete with existing or potential competitors as a result of these disadvantages, we may be unable to generate sufficient or any revenues and our business will be harmed.
Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt. Conversion of our Convertible Notes (defined below) may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock.
Despite recent profitability, we have incurred annual net losses in most years since our inception and anticipate that we could continue to incur significant losses for the foreseeable future unless we can successfully commercialize HEPLISAV-B and/or continue to sell significant quantities of our CpG 1018 adjuvant, and if we are unable to sustain profitability, the market value of our common stock will likely decline. Until we are able to generate significant revenues or achieve profitability through product sales on a consistent basis, we may require substantial additional capital to finance our operations.
We may develop, seek regulatory approval for and market HEPLISAV-B or any other product candidates we may develop outside the U.S. or Europe, requiring a significant commitment of resources. Failure to successfully manage our international operations could result in significant unanticipated costs and delays in regulatory approval or commercialization of our products or product candidates.
Clinical trials for our commercial product and product candidates are expensive and time consuming, may take longer than we expect or may not be completed at all, and may have uncertain outcomes.
As a biopharmaceutical company, we engage clinical research organizations (“CROs”) to conduct clinical studies, and failure by us or our CROs to conduct a clinical study in accordance with good clinical practice standards and other applicable regulatory requirements could result in disqualification of the applicable clinical trial from consideration in support of approval of a potential product.

 

4


 

Regulatory authorities may require more clinical trials for our product candidates than we currently expect or are conducting before granting regulatory approval, if regulatory approval is granted at all. Our clinical trials may be extended which may lead to substantial delays in the regulatory approval process for our product candidates and may impair our ability to generate revenue from such product candidates.
HEPLISAV-B and most of our earlier stage programs rely on oligonucleotide toll-like receptor (“TLR”) agonists. In the event of serious adverse event data relating to TLR agonists, we may be required to reduce the scope of, or discontinue, our operations, or reevaluate the viability of strategic alternatives.
As we plan for broader commercialization of HEPLISAV-B and for expanded capacity to manufacture our CpG 1018 adjuvant, our financial commitments to increase supply capacity might outpace actual demand for our products. Also, if we are unable to maintain our production operations in Düsseldorf, Germany, and our existing suppliers for CpG 1018 adjuvant, we would have to establish alternate qualified manufacturing capabilities, which could result in significant additional operating costs and delays in developing and commercializing HEPLISAV-B and any approved or potential vaccine utilizing CpG 1018. There can be no assurance that we, our existing suppliers, or other third parties will be able to produce CpG 1018 at a cost, quantity and quality sufficient to support our existing or any future collaborations.
We rely on our facility in Düsseldorf, Germany and third parties to supply materials or perform processes necessary to manufacture HEPLISAV-B. We rely on a limited number of suppliers to produce the oligonucleotides we require for development and commercialization. Additionally, we and our collaborators have limited experience in manufacturing our products and product candidates in commercial quantities. With respect to HEPLISAV-B, we use a pre-filled syringe presentation of the vaccine and our ability to meet future demand will depend on our or our contract manufacturer's ability to provide sufficient supply in this presentation.
As we continue to grow as a commercial organization and enter into supply agreements with customers and collaborators, those supply agreements will have obligations to deliver product for which we are reliant upon third parties to manufacture on our behalf.
HEPLISAV-B is subject to regulatory obligations and continued regulatory review, and if we receive regulatory approval for our other product candidates, we will be subject to ongoing FDA and foreign regulatory obligations and continued regulatory review for such products.
A key part of our business strategy for products in development is to establish collaborative relationships to help fund or manage development and commercialization of our product candidates and research programs. We may not succeed in establishing and maintaining collaborative relationships, which may significantly limit our ability to continue to develop and commercialize those products and programs, if at all. These relationships may not succeed on expected timelines, or at all.
We rely on CROs and clinical sites and investigators for our clinical trials. If these third parties do not fulfill their contractual obligations or meet expected deadlines, our planned clinical trials may be delayed and we may fail to obtain the regulatory approvals necessary to commercialize our product candidates.
As we focus on commercialization of HEPLISAV-B, we may encounter difficulties in managing our commercial growth and expanding our operations successfully.
The loss of key personnel could delay or prevent achieving our objectives. In addition, our continued growth to support commercialization may result in difficulties in managing our growth and expanding our operations successfully.
If third parties successfully assert that we have infringed their patents and proprietary rights or challenge our patents and proprietary rights, we may become involved in intellectual property disputes and litigation that would be costly, time consuming and delay or prevent development or commercialization of our product candidates.
Future sales of our common stock or the perception that such sales may occur in the public market could cause our stock price to fall.

 

5


 

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

Dynavax Technologies Corporation

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

 

 

March 31,

 

 

December 31,

 

 

2022

 

 

2021

 

 

(unaudited)

 

 

(Note 1)

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

179,421

 

 

$

436,189

 

Marketable securities available-for-sale

 

323,795

 

 

 

109,761

 

Accounts receivables, net

 

133,968

 

 

 

116,216

 

Other receivables

 

2,968

 

 

 

15,600

 

Inventories, net

 

79,038

 

 

 

61,335

 

Prepaid manufacturing

 

138,330

 

 

 

159,655

 

Prepaid expenses and other current assets

 

82,995

 

 

 

73,764

 

Total current assets

 

940,515

 

 

 

972,520

 

Property and equipment, net

 

36,407

 

 

 

35,020

 

Operating lease right-of-use assets

 

26,310

 

 

 

25,964

 

Goodwill

 

2,082

 

 

 

2,125

 

Restricted cash

 

214

 

 

 

219

 

Other assets

 

3,447

 

 

 

3,398

 

Total assets

$

1,008,975

 

 

$

1,039,246

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

20,194

 

 

$

2,600

 

Accrued research and development

 

6,359

 

 

 

4,688

 

CEPI accrual

 

107,370

 

 

 

128,848

 

Accrued liabilities

 

16,108

 

 

 

49,796

 

Warrant liability

 

-

 

 

 

18,016

 

Deferred revenue

 

313,203

 

 

 

349,864

 

Other current liabilities

 

2,969

 

 

 

2,590

 

Total current liabilities

 

466,203

 

 

 

556,402

 

Convertible Notes, net of debt discount of $4,741 and $5,010 at March 31, 2022 and December 31, 2021, respectively

 

220,759

 

 

 

220,490

 

Long-term portion of lease liabilities

 

34,253

 

 

 

34,316

 

Other long-term liabilities

 

276

 

 

 

5,664

 

Total liabilities

 

721,491

 

 

 

816,872

 

Commitments and contingencies (Note 5)

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock: $0.001 par value; 278,000 shares authorized at
  March 31, 2022 and December 31, 2021;
126,297 shares and 122,945
   shares issued and outstanding at March 31, 2022 and December 31, 2021,
   respectively

 

126

 

 

 

123

 

Additional paid-in capital

 

1,476,013

 

 

 

1,441,868

 

Accumulated other comprehensive loss

 

(4,163

)

 

 

(2,266

)

Accumulated deficit

 

(1,184,492

)

 

 

(1,217,351

)

Total stockholders’ equity

 

287,484

 

 

 

222,374

 

Total liabilities and stockholders’ equity

$

1,008,975

 

 

$

1,039,246

 

 

See accompanying notes.

 

6


 

Dynavax Technologies Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

Product revenue, net

 

$

112,327

 

 

$

82,885

 

Other revenue

 

 

1,665

 

 

 

450

 

Total revenues

 

 

113,992

 

 

 

83,335

 

Operating expenses:

 

 

 

 

 

 

Cost of sales - product

 

 

39,962

 

 

 

24,625

 

Research and development

 

 

11,095

 

 

 

7,758

 

Selling, general and administrative

 

 

32,172

 

 

 

22,423

 

Total operating expenses

 

 

83,229

 

 

 

54,806

 

Income from operations

 

 

30,763

 

 

 

28,529

 

Other income (expense):

 

 

 

 

 

 

Interest income

 

 

261

 

 

 

47

 

Interest expense

 

 

(1,680

)

 

 

(4,712

)

Sublease income

 

 

1,609

 

 

 

2,022

 

Change in fair value of warrant liability (Note 10)

 

 

1,801

 

 

 

(25,552

)

Other

 

 

105

 

 

 

557

 

Net income

 

 

32,859

 

 

 

891

 

Net income per share attributable to common stockholders

 

 

 

 

 

 

Basic

 

$

0.26

 

 

$

0.01

 

Diluted

 

$

0.22

 

 

$

0.01

 

Weighted-average shares used in computing net income per share attributable to common stockholders:

 

 

 

 

 

 

Basic

 

 

124,555

 

 

 

112,035

 

Diluted

 

 

149,425

 

 

 

113,469

 

 

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

 

2022

 

 

2021

 

 

Net income

 

$

32,859

 

 

$

891

 

 

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

Change in unrealized gain (loss) on marketable securities available-
   for-sale

 

 

(1,272

)

 

 

(9

)

 

Foreign currency translation adjustments

 

 

(625

)

 

 

(1,390

)

 

Total other comprehensive loss

 

 

(1,897

)

 

 

(1,399

)

 

Total comprehensive income

 

$

30,962

 

 

$

(508

)

 

 

See accompanying notes.

 

 

 

7


 

Dynavax Technologies Corporation

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)

 

 

 

Common Stock

 

 

Preferred Stock

 

 

Additional
Paid-In

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders'

 

Three Months Ended March 31, 2022

 

Shares

 

 

Par Amount

 

 

Shares

 

 

Par Amount

 

 

Capital

 

 

(Loss) Income

 

 

Deficit

 

 

Equity

 

Balances at December 31, 2021

 

 

122,945

 

 

$

123

 

 

 

-

 

 

$

-

 

 

$

1,441,868

 

 

$

(2,266

)

 

$

(1,217,351

)

 

$

222,374

 

Issuance of common stock upon exercise of stock options and/or release of restricted stock awards, net

 

 

1,391

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

1,121

 

 

 

-

 

 

 

-

 

 

 

1,122

 

Issuance of common stock upon exercise of warrants

 

 

1,879

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

24,668

 

 

 

-

 

 

 

-

 

 

 

24,670

 

Issuance of common stock under Employee Stock Purchase Plan

 

 

82

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

710

 

 

 

-

 

 

 

-

 

 

 

710

 

Stock compensation expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,646

 

 

 

-

 

 

 

-

 

 

 

7,646

 

Total other comprehensive loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,897

)

 

 

-

 

 

 

(1,897

)

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

32,859

 

 

 

32,859

 

Balances at March 31, 2022

 

 

126,297

 

 

$

126

 

 

 

-

 

 

$

-

 

 

$

1,476,013

 

 

$

(4,163

)

 

$

(1,184,492

)

 

$

287,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Preferred Stock

 

 

Additional
Paid-In

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders'

 

Three Months Ended March 31, 2021

 

Shares

 

 

Par Amount

 

 

Shares

 

 

Par Amount

 

 

Capital

 

 

(Loss) Income

 

 

Deficit

 

 

Equity

 

Balances at December 31, 2020

 

 

110,190

 

 

$

110

 

 

 

4

 

 

$

-

 

 

$

1,352,374

 

 

$

273

 

 

$

(1,294,064

)

 

$

58,693

 

Issuance of common stock upon exercise of warrants

 

 

750

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

7,927

 

 

 

-

 

 

 

-

 

 

 

7,928

 

Issuance of common stock upon exercise of stock options and/or release of restricted stock awards, net

 

 

640

 

 

 

 

 

 

 

 

 

 

 

 

387

 

 

 

 

 

 

 

 

 

387

 

Issuance of common stock under Employee Stock Purchase Plan

 

 

104

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

383

 

 

 

-

 

 

 

-

 

 

 

383

 

Issuance of common stock, net of issuance costs, in conjunction with an At Market Sales
   Agreement (see Note 10)

 

 

2,879

 

 

 

3

 

 

 

-

 

 

 

-

 

 

 

28,153

 

 

 

-

 

 

 

-

 

 

 

28,156

 

Stock compensation expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,723

 

 

 

-

 

 

 

-

 

 

 

4,723

 

Total other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,399

)

 

 

-

 

 

 

(1,399

)

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

891

 

 

 

891

 

Balances at March 31, 2021

 

 

114,563

 

 

$

114

 

 

 

4

 

 

$

-

 

 

$

1,393,947

 

 

$

(1,126

)

 

$

(1,293,173

)

 

$

99,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

 

 

 

8


 

Dynavax Technologies Corporation

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

2022

 

 

2021

 

Operating activities

 

 

 

 

 

Net income

$

32,859

 

 

$

891

 

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

985

 

 

 

1,106

 

Amortization of right-of-use assets and loss on disposal of property and equipment

 

743

 

 

 

653

 

(Accretion of discounts) amortization of premium on marketable securities

 

(181

)

 

 

221

 

Change in fair value of warrant liability

 

(1,801

)

 

 

25,552

 

Stock compensation expense

 

7,646

 

 

 

4,723

 

Non-cash interest expense

 

1,680

 

 

 

414

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts and other receivables, net

 

(5,120

)

 

 

(61,333

)

Inventories, net

 

(17,703

)

 

 

(5,157

)

Prepaid manufacturing

 

21,325

 

 

 

(3,219

)

Prepaid expenses and other current assets

 

(9,231

)

 

 

(171

)

Other assets

 

(49

)

 

 

(95

)

Accounts payable

 

16,938

 

 

 

(295

)

CEPI accrual

 

(21,478

)

 

 

-

 

Lease liabilities

 

(806

)

 

 

(751

)

Deferred revenue

 

(36,661

)

 

 

78,340

 

Accrued liabilities and other liabilities

 

(39,589

)

 

 

(2,847

)

Net cash (used in) provided by operating activities

 

(50,443

)

 

 

38,032

 

Investing activities

 

 

 

 

 

Purchases of marketable securities

 

(250,375

)

 

 

(72,016

)

Proceeds from maturities and redemptions of marketable securities

 

35,250

 

 

 

51,130

 

Purchases of property and equipment, net

 

(1,358

)

 

 

(1,747

)

Net cash used in investing activities

 

(216,483

)

 

 

(22,633

)

Financing activities

 

 

 

 

 

Proceeds from issuance of common stock, net

 

-

 

 

 

28,156

 

Proceeds from warrants exercises

 

8,455

 

 

 

3,377

 

Proceeds from exercise of stock options and/or release of restricted stock awards, net

 

1,122

 

 

 

387

 

Proceeds from Employee Stock Purchase Plan

 

710

 

 

 

383

 

Net cash provided by financing activities

 

10,287