DYNAVAX TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2010 2009 2010 2009 --------- --------- --------- --------- Revenues: Collaboration revenue $ 1,341 $ 14,596 $ 8,762 $ 32,288 Grant revenue 617 895 1,479 2,034 Service and license revenue 233 393 294 906 --------- --------- --------- --------- Total revenues 2,191 15,884 10,535 35,228 Operating expenses: Research and development 14,045 9,239 26,525 19,571 General and administrative 4,173 3,533 8,743 7,957 Amortization of intangible assets 245 245 490 490 --------- --------- --------- --------- Total operating expenses 18,463 13,017 35,758 28,018 --------- --------- --------- --------- Income (loss) from operations (16,272) 2,867 (25,223) 7,210 Interest income 39 46 41 156 Interest expense (431) (12) (830) (27) Other income (expense) (11,340) 226 (11,176) (120) --------- --------- --------- --------- Net income (loss) (28,004) 3,127 (37,188) 7,219 Add: Losses attributed to noncontrolling interest in SDI -- 983 -- 1,992 --------- --------- --------- --------- Net income (loss) attributable to Dynavax $ (28,004) $ 4,110 $ (37,188) $ 9,211 --------- --------- --------- --------- Basic net income (loss) per share attributable to Dynavax stockholders $ (0.34) $ 0.10 $ (0.54) $ 0.23 ========= ========= ========= ========= Shares used to compute basic net income (loss) per share attributable to Dynavax stockholders 82,012 39,923 68,264 39,906 ========= ========= ========= ========= Diluted net income (loss) per share attributable to Dynavax stockholders $ (0.34) $ 0.10 $ (0.54) $ 0.23 ========= ========= ========= ========= Shares used to compute diluted net income (loss) per share attributable to Dynavax stockholders 82,012 40,064 68,264 39,906 ========= ========= ========= ========= DYNAVAX TECHNOLOGIES CORPORATION RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ----------------- ----------------- 2010 2009 2010 2009 -------- -------- -------- -------- GAAP revenues $ 2,191 $ 15,884 $ 10,535 $ 35,228 ADD: Collaboration funding incurred under SDI programs -- 795 -- 1,542 LESS: Non-cash deferred revenue from Merck collaboration -- 12,948 -- 28,485 -------- -------- -------- -------- Pro forma revenues (1) $ 2,191 $ 3,731 $ 10,535 $ 8,285 ======== ======== ======== ======== (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 Six Months Ended June 30, June 30, ----------------- ----------------- 2010 2009 2010 2009 -------- -------- -------- -------- GAAP operating expenses $ 18,463 $ 13,017 $ 35,758 $ 28,018 LESS: Stock-based compensation expense 425 667 966 1,186 Amortization of intangible assets 245 245 490 490 -------- -------- -------- -------- Pro forma operating expenses (2) $ 17,793 $ 12,105 $ 34,302 $ 26,342 ======== ======== ======== ======== (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) June 30, December 31, 2010 2009 ------------ ------------ Assets Cash and cash equivalents and marketable securities $ 57,378 $ 36,720 Property and equipment, net 6,324 7,997 Goodwill 2,312 2,312 Other intangible assets, net 789 1,279 Other assets 4,875 2,162 ------------ ------------ Total assets $ 71,678 $ 50,470 ============ ============ Liabilities and stockholders' equity Accounts payable $ 1,033 $ 1,686 Accrued liabilities 14,644 7,507 Warrant liability to Holdings 12,029 2,567 Current portion of deferred revenue 1,429 2,718 Noncurrent portion of deferred revenue 16,369 17,083 Long-term note payable to Holdings 10,140 9,342 Long-term contingent liability to Holdings 3,161 3,040 Other long-term liabilities 65 151 Stockholders' equity 12,808 6,376 ------------ ------------ Total liabilities and stockholders' equity $ 71,678 $ 50,470 ============ ============
Contact Information: Contact: Jennifer Lew Vice President, Finance 510-665-7217