DYNAVAX TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, -------------------- 2010 2009 --------- --------- Revenues: Collaboration revenue $ 7,421 $ 17,692 Grant revenue 862 1,139 Service and license revenue 61 513 --------- --------- Total revenues 8,344 19,344 Operating expenses: Research and development 12,480 10,332 General and administrative 4,570 4,424 Amortization of intangible assets 245 245 --------- --------- Total operating expenses 17,295 15,001 --------- --------- Loss from operations (8,951) 4,343 Interest income 2 110 Interest expense (399) (15) Other income (expense) 164 (346) --------- --------- Net income (loss) (9,184) 4,092 Add: Losses attributed to noncontrolling interest in SDI -- 1,009 --------- --------- Net income (loss) attributable to Dynavax $ (9,184) $ 5,101 ========= ========= Basic and diluted net income (loss) per share attributable to Dynavax common stockholders $ (0.17) $ 0.13 ========= ========= Shares used to compute basic net income (loss) per share attributable to Dynavax common stockholders 54,364 39,889 ========= ========= DYNAVAX TECHNOLOGIES CORPORATION RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES (In thousands) (Unaudited) Three Months Ended March 31, --------------------- 2010 2009 ---------- ---------- GAAP revenues $ 8,344 $ 19,344 ADD: Collaboration funding incurred under SDI programs -- 747 LESS: Non-cash deferred revenue from Merck collaboration -- 15,537 ---------- ---------- Pro forma revenues(1) $ 8,344 $ 4,554 ========== ========== (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 March 31, --------------------- 2010 2009 ---------- ---------- GAAP operating expenses $ 17,295 $ 15,001 LESS: Stock-based compensation expense 541 519 Amortization of intangible assets 245 245 ---------- ---------- Pro forma operating expenses(2) $ 16,509 $ 14,237 ========== ========== (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) March 31, December 31, 2010 2009 ----------- ------------ Assets Cash and cash equivalents and marketable securities $ 30,080 $ 36,720 Property and equipment, net 7,199 7,997 Goodwill 2,312 2,312 Other intangible assets, net 1,034 1,279 Other assets 3,659 2,162 ----------- ------------ Total assets $ 44,284 $ 50,470 =========== ============ Liabilities and stockholders' equity Accounts payable $ 1,091 $ 1,686 Accrued liabilities 10,571 7,507 Warrant liability to Holdings 2,315 2,567 Current portion of deferred revenue 2,384 2,718 Noncurrent portion of deferred revenue 16,726 17,083 Long-term note payable to Holdings 9,741 9,342 Long-term contingent liability to Holdings 3,109 3,040 Other long-term liabilities 146 151 Stockholders' equity (deficit) (1,799) 6,376 ----------- ------------ Total liabilities and stockholders' equity $ 44,284 $ 50,470 =========== ============
Contact Information: Contact: Jennifer Lew Vice President, Finance 510-665-7217