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Equity Plans and Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2021
Share Based Compensation [Abstract] |
Equity Plans and Stock-Based Compensation | 12. Equity Plans and Stock-Based Compensation In January 2021, we adopted the Dynavax Technologies Corporation 2021 Inducement Award Plan (“2021 Inducement Plan”), pursuant to which we reserved 1,500,000 shares of common stock for issuance under the plan to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company. In June 2021, we amended the 2021 Inducement Plan (“Amended 2021 Inducement Plan”) to increase the number of shares of common stock reserved under the 2021 Inducement Plan to 3,250,000. In May 2021, the stockholders approved the amendment and restatement of our 2014 Employee Stock Purchase Plan (the “Amended and Restated 2014 Employee Stock Purchase Plan”). The maximum number of shares of common stock that may be issued under the Amended and Restated 2014 Employee Stock Purchase Plan is 1,850,000. As of June 30, 2021, the 2018 Equity Incentive Plan, as amended, (“Amended 2018 EIP”), the Amended 2021 Inducement Plan and the Amended and Restated 2014 Employee Stock Purchase Plan are our active plans. Under the Amended 2018 EIP, the aggregate number of shares of our common stock that may be issued to employees and directors (subject to adjustment for certain changes in capitalization) is 22,517,869. Under our stock-based compensation plans, option awards generally vest over a three or four-year period contingent upon continuous service, and expire seven to ten years from the date of grant (or earlier upon termination of continuous service). Option activity under our stock-based compensation plans during the six months ended June 30, 2021 was as follows (in thousands except per share amounts):
|  | Shares Underlying Outstanding Options |  |  | Weighted- Average Exercise Price Per Share |  |  | Weighted- Average Remaining Contractual Term (years) |  |  | Aggregate Intrinsic Value |
Balance at December 31, 2020 |  |  | 8,505 |  |  | $ | 11.57 |  |  |  |  |  |  |  |  |
Options granted |  |  | 2,817 |  |  |  | 9.31 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (308 | ) |  |  | 4.69 |  |  |  |  |  |  |  |  |
Options cancelled: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options forfeited (unvested) |  |  | (376 | ) |  |  | 7.74 |  |  |  |  |  |  |  |  |
Options expired (vested) |  |  | (391 | ) |  |  | 18.63 |  |  |  |  |  |  |  |  |
Balance at June 30, 2021 |  |  | 10,247 |  |  | $ | 11.03 |  |  |  | 4.36 |  |  | $ | 17,136 |
Vested and expected to vest at June 30, 2021 |  |  | 9,876 |  |  | $ | 11.12 |  |  |  | 4.29 |  |  | $ | 16,644 |
Exercisable at June 30, 2021 |  |  | 5,966 |  |  | $ | 13.04 |  |  |  | 3.03 |  |  | $ | 9,627 |
Restricted stock unit activity under our stock-based compensation plans during the six months ended June 30, 2021 was as follows (in thousands except per share amounts):
|  | Number of Shares (in thousands) |  |  | Weighted-Average Grant-Date Fair Value Per Share |
Non-vested as of December 31, 2020 |  |  | 1,794 |  |  | $ | 7.23 |
Granted |  |  | 1,797 |  |  |  | 9.43 |
Vested |  |  | (537 | ) |  |  | 8.85 |
Forfeited |  |  | (276 | ) |  |  | 8.24 |
Non-vested as of June 30, 2021 |  |  | 2,778 |  |  | $ | 8.24 |
We granted performance-based restricted stock unit (“PSU”) to certain executives in February 2021. These PSUs vest upon a specified market condition. The summary of PSU activities for the six months ended June 30, 2021 is as follows:
|  | Number of Shares (in thousands) |  |  | Weighted-Average Grant-Date Fair Value Per Share |
Non-vested as of December 31, 2020 |  |  | - |  |  | $ | - |
Granted |  |  | 297 |  |  |  | 8.40 |
Forfeited |  |  | (60 | ) |  |  | 8.40 |
Non-vested as of June 30, 2021 |  |  | 237 |  |  | $ | 8.40 |
The fair value-based measurement of each option is estimated on the date of grant using the Black-Scholes option valuation model. The fair value of each RSU is determined at the date of grant using our closing stock price. The fair value of each PSU is estimated using the Monte Carlo simulation method on the date of grant. The weighted-average assumptions used in the calculations of these fair value measurements are as follows:
|  | Stock Options |  |  | Stock Options |  |  | Market-Based Performance Stock Unit (“PSUs”) |
|  | Three Months Ended |  |  | Six Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |  |  | June 30, 2021 |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  |  |  |
Weighted-average fair value per share |  | $ | 6.20 |  |  | $ | 3.77 |  |  | $ | 6.57 |  |  | $ | 3.61 |  |  | $ | 8.40 |
Risk-free interest rate |  |  | 0.9 | % |  |  | 0.3 | % |  |  | 0.6 | % |  |  | 1.2 | % |  | From 0.03% to 1.92% |
Expected life (in years) |  |  | 4.5 |  |  |  | 4.5 |  |  |  | 4.5 |  |  |  | 4.5 |  |  |  | 2.9 |
Volatility |  |  | 0.9 |  |  |  | 0.9 |  |  |  | 1.0 |  |  |  | 0.9 |  |  |  | 0.9 |
The components of stock-based compensation expense were as follows (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Research and development |  | $ | 937 |  |  | $ | 774 |  |  | $ | 1,809 |  |  | $ | (799 | )
Selling, general and administrative |  |  | 3,445 |  |  |  | 2,491 |  |  |  | 6,589 |  |  |  | 4,933 |
Cost of sales - product |  |  | 155 |  |  |  | 179 |  |  |  | 324 |  |  |  | 315 |
Inventory |  |  | 487 |  |  |  | 644 |  |  |  | 1,025 |  |  |  | 1,417 |
Total |  | $ | 5,024 |  |  | $ | 4,088 |  |  | $ | 9,747 |  |  | $ | 5,866 |
Compensation expense is based on awards ultimately expected to vest and reflects estimated forfeitures. Stock-based compensation for the six months ended June 30, 2020 included reversal of expenses related to cancellation of certain equity grants in the first quarter of 2020.

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