DYNAVAX TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenues:
Collaboration revenue $ 1,455 $ 10,231 $ 35,534 $ 31,666
Grant revenue 556 972 3,477 2,999
Service and license revenue 178 742 1,307 2,429
--------- --------- --------- ---------
Total revenues 2,189 11,945 40,318 37,094
Operating expenses:
Research and development(1) 9,506 6,249 38,708 44,771
General and administrative(2) 4,052 3,559 15,745 15,463
Amortization of intangible
assets 245 245 980 980
--------- --------- --------- ---------
Total operating expenses(3) 13,803 10,053 55,433 61,214
--------- --------- --------- ---------
Loss from operations (11,614) 1,892 (15,115) (24,120)
Interest income 4 170 178 1,631
Loan forgiveness -- -- -- 5,000
Interest expense (4) (16) (124) (9,157)
Other income (expense) (26) 114 (66) 110
--------- --------- --------- ---------
Net income (loss) (11,640) 2,160 (15,127) (26,536)
Consideration paid in excess
of carrying value of the
noncontrolling interest in
SDI (19,671) -- (19,671) --
Add: Losses attributed to
noncontrolling interest in
SDI 1,041 939 4,233 5,707
--------- --------- --------- ---------
Net income (loss)
attributable to Dynavax $ (30,270) $ 3,099 $ (30,565) $ (20,829)
========= ========= ========= =========
Basic net income (loss) per
share attributable to
Dynavax common stockholders $ (0.73) $ 0.08 $ (0.76) $ (0.52)
========= ========= ========= =========
Shares used to compute basic
net income (loss) per share
attributable to Dynavax
common stockholders 41,420 39,854 40,350 39,819
========= ========= ========= =========
Diluted net income (loss) per
share attributable to Dynavax
common stockholders $ (0.73) $ 0.08 $ (0.76) $ (0.52)
========= ========= ========= =========
Shares used to compute
diluted net income (loss)
per share attributable to
Dynavax common stockholders 41,420 39,854 40,350 39,819
========= ========= ========= =========
(1) Research and development expenses included non-cash stock-based
compensation charges of $0.3 million and $1.1 million for the fourth
quarter and year ended December 31, 2009, respectively. Research and
development expenses included non-cash stock-based compensation charges of
$0.4 million and $1.4 million for the fourth quarter and year ended
December 31, 2008, respectively.
(2) General and administrative expenses included non-cash stock-based
compensation charges of $0.6 million and $1.9 million for the fourth
quarter and year ended December 31, 2009, respectively. General and
administrative expenses included non-cash stock-based compensation charges
of $0.4 million and $1.8 million for the fourth quarter and year ended
December 31, 2008, respectively.
(3) Total operating expenses excluding non-cash stock-based compensation
charges were $12.9 million and $52.4 million for the fourth quarter and
year ended December 31, 2009, respectively. Total operating expenses
excluding non-cash stock-based compensation charges were $9.3 million and
$58.0 million for the fourth quarter and year ended December 31, 2008,
respectively.
DYNAVAX TECHNOLOGIES CORPORATION
RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
GAAP revenues $ 2,189 $ 11,945 $ 40,318 $ 37,094
ADD:
Collaboration funding
incurred under SDI programs 813 744 3,364 5,349
LESS:
Non-cash deferred revenue
from Merck collaboration -- 3,086 28,485 4,965
--------- --------- --------- ---------
Pro forma revenues(1) $ 3,002 $ 9,603 $ 15,197 $ 37,478
========= ========= ========= =========
(1) These pro forma amounts are intended to illustrate the Company's
revenues including collaboration funding provided for the SDI programs and
excluding certain non-cash items. The collaboration funding is reflected in
the amount attributed to the noncontrolling interest in SDI in the
Company's consolidated statement of operations, but would have been
reported as revenue if SDI's results of operations were not consolidated
with those of the Company. Management of the Company believes the pro forma
results are a more useful measure of the Company's revenues because it
provides investors the ability to evaluate the Company's operations in the
manner that management uses to assess the continued progress of operating
programs. These pro forma results are not in accordance with, or an
alternative for, generally accepted accounting principles and may be
different from pro forma measures used by other companies.
DYNAVAX TECHNOLOGIES CORPORATION
RECONCILIATION OF GAAP OPERATING EXPENSES TO PRO FORMA OPERATING EXPENSES
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
GAAP operating expenses $ 13,803 $ 10,053 $ 55,433 $ 61,214
LESS:
Stock-based compensation
expense 933 717 3,035 3,205
Amortization of intangible
assets 245 245 980 980
--------- --------- --------- ---------
Pro forma operating expenses(2) $ 12,625 $ 9,091 $ 51,418 $ 57,029
========= ========= ========= =========
(2) These pro forma amounts are intended to illustrate the Company's
operating expenses excluding certain non-cash charges in accordance with
the financial statements that management uses to evaluate the Company's
operations. These pro forma results are not in accordance with, or an
alternative for, generally accepted accounting principles and may be
different from pro forma measures used by other companies.
DYNAVAX TECHNOLOGIES CORPORATION
SELECTED BALANCE SHEET DATA
(In thousands)
(Unaudited)
December 31, December 31,
2009 2008
------------ ------------
Assets
Cash and cash equivalents and marketable
securities(1) $ 36,720 $ 68,476
Property and equipment, net 7,997 9,510
Goodwill 2,312 2,312
Other intangible assets, net 1,279 2,259
Other assets 2,162 8,066
------------ ------------
Total assets $ 50,470 $ 90,623
============ ============
Liabilities and stockholders' equity
Accounts payable $ 1,686 $ 905
Accrued liabilities 7,507 6,816
Warrant liability to Holdings 2,567 --
Current portion of deferred revenue 2,718 33,133
Noncurrent portion of deferred revenue 17,083 18,512
Liability from program option exercised under
the SDI collaboration -- 15,000
Long-term note payable to Holdings 9,342 --
Long-term contingent liability to Holdings 3,040 --
Other long-term liabilities 151 101
Stockholders' equity 6,376 16,156
------------ ------------
Total liabilities and stockholders' equity $ 50,470 $ 90,623
============ ============
(1) These amounts also included investments held by SDI of zero and $25.1
million as of December 31, 2009 and 2008, respectively.
Contact Information: Contacts: Jennifer Lew Vice President, Finance 510-665-7217 Michael Ostrach Vice President and Chief Business Officer 510-665-7257