Dynavax(DVAX) - 2023 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2023 were $46.9 million, a decrease of 58.8% compared to $114.0 million in Q1 2022[18] - Product revenue, net for Q1 2023 was $43.5 million, down 61.3% from $112.3 million in Q1 2022[18] - The net loss for Q1 2023 was $24.3 million, compared to a net income of $32.9 million in Q1 2022[18] - Basic net loss per share attributable to common stockholders was $0.19 for Q1 2023, compared to earnings of $0.26 per share in Q1 2022[18] - Total revenues for the three months ended March 31, 2023, were $46.925 million, compared to $113.992 million for the same period in 2022, representing a decrease of approximately 59.0%[81] - HEPLISAV-B product revenue for Q1 2023 was $43.451 million, up from $20.810 million in Q1 2022, indicating a growth of approximately 108.5%[81] - The company reported a net loss of $24.332 million for Q1 2023, compared to a net income of $32.859 million in Q1 2022, reflecting a significant decline in profitability[89] Operating Expenses - Total operating expenses for Q1 2023 were $77.2 million, a decrease of 6.3% from $83.2 million in Q1 2022[18] - Stock-based compensation expense increased to $10.034 million in Q1 2023, up from $7.646 million in Q1 2022[26] - The company reported a bad debt expense of $12.313 million for the quarter, which was not present in the same period last year[26] - Selling, general and administrative expenses for stock-based compensation increased to $6.830 million in Q1 2023, compared to $5.427 million in Q1 2022, reflecting a rise of about 25.8%[106] - Research and development expenses related to stock-based compensation rose to $2.112 million in Q1 2023, up from $1.276 million in Q1 2022, indicating a growth of approximately 65.3%[106] Cash and Assets - Cash and cash equivalents decreased to $174.4 million as of March 31, 2023, from $202.0 million at December 31, 2022[16] - Total assets as of March 31, 2023, were $969.9 million, down from $985.9 million at December 31, 2022[16] - Total stockholders' equity decreased to $563.7 million as of March 31, 2023, from $581.0 million at December 31, 2022[16] - Total cash and cash equivalents and marketable securities as of March 31, 2023, amounted to $651.956 million, a slight increase from $624.395 million as of December 31, 2022[41] Liabilities and Equity - Total liabilities increased slightly to $406.2 million as of March 31, 2023, compared to $404.8 million at December 31, 2022[16] - The accumulated deficit as of March 31, 2023, was $948.5 million, an increase from $924.2 million at December 31, 2022[16] - The aggregate principal amount of convertible senior notes was $225.5 million as of March 31, 2023, excluding a debt discount of $3.6 million[51] - The company issued $225.5 million in convertible senior notes with a 2.50% interest rate, maturing on May 15, 2026, and recorded at a fair value of $269.1 million as of March 31, 2023[76] Clinical and Product Development - The company has advanced a multi-program clinical pipeline leveraging its proprietary CpG 1018 adjuvant, with ongoing Phase 1 and Phase 2 clinical trials[28] - As of March 31, 2023, Dynavax satisfied all delivery obligations under its global commercial supply agreements for COVID-19 vaccines[28] - Dynavax is collaborating with the U.S. Department of Defense on a Phase 2 clinical trial for plague, fully funded by the DoD[28] - The U.S. Department of Defense agreement for a recombinant plague vaccine adjuvanted with CpG 1018 adjuvant is valued at approximately $22.0 million over two and a half years, with revenue recognized of $3.5 million for the three months ended March 31, 2023[67] Stock and Shareholder Information - As of March 31, 2023, there were 128,471,773 shares of common stock outstanding, with a weighted average of 127,921 shares for basic net loss per share calculations[91] - The company had $120.5 million remaining under the 2020 ATM Agreement for potential future stock sales[92] - The total number of stock options outstanding as of March 31, 2023, was 10,735,000, with a weighted average exercise price of $10.56[98] - The company granted 2,152,000 restricted stock units (RSUs) during Q1 2023, with a weighted average grant-date fair value of $11.06 per share[99] Tax and Fair Value - The effective tax rate for the three months ended March 31, 2023, was approximately (2.6)%, compared to 0% for the same period in 2022[107] - A provision for income taxes of $0.6 million was recorded for the three months ended March 31, 2023, while no provision was recorded in the same period of 2022[107] - The fair value of stock options granted in Q1 2023 was estimated at $7.28 per share, down from $8.05 in Q1 2022[103] - The risk-free interest rate used in fair value calculations increased to 4.0% for stock options in Q1 2023, compared to 1.9% in Q1 2022[103]