Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 67

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 schedules, which may span multiple quarters. Most performance obligations are generally satisfied within a year of the contract execution date. As of September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $48.7 million, of which approximately 72% is expected to be converted to revenue over the next twelve months, approximately 23% in the following twelve months, and the remainder thereafter.Product WarrantiesWe generally provide a one-year warranty on instruments. In addition, we provide a limited warranty on consumables. At the time revenue is recognized, an accrual is established for estimated warranty costs based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranties are recorded as part of accrued expenses on the condensed consolidated balance sheets and warranty expense is recorded as a component of cost of product revenue in the condensed consolidated statements of operations and comprehensive loss. There were no material changes in estimates for the periods presented below. Changes in the reserve for product warranties were as follows for the periods indicated:Three Months Ended September 30,Nine Months Ended September 30,(In thousands)2025202420252024Balance at beginning of period$2,688 $3,462 $3,100 $4,681 Additions charged to cost of product revenue1,252 1,414 3,809 4,787 Repairs and replacements(1,384)(1,610)(4,353)(6,202)Balance at end of period$2,556 $3,266 $2,556 $3,266 

NOTE 4.  CONVERTIBLE SENIOR NOTES2029 Convertible Senior NotesOn November 7, 2024, we entered into an exchange agreement with SB Northstar LP (“SBN”), a subsidiary of SoftBank Group Corp., pursuant to which we agreed to exchange the remaining approximately $459.0 million in aggregate principal amount of our previously held 1.50% Convertible Senior Notes due 2028 (the “2028 Notes”) outstanding for (i) $200.0 million aggregate principal amount of 1.50% Convertible Senior Notes due 2029 (the “2029 Notes”), (ii) 20,451,570 shares of common stock (the “Exchange Shares”) and (iii) $50.0 million