Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 35

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 to vest, while not meeting the minimum achievement of the revenue goal under the PSUs will result in no shares subject to the PSUs becoming eligible to vest. The following table summarizes the time-based RSUs and PSUs activity: Restricted Stock Units (RSU)Performance Stock Units (PSU)Weighted average grant datefair value(shares in thousands)RSUPSUOutstanding at December 31, 202414,211 392 $7.41 $9.43 Granted11,895 — 1.25 — Vested(4,331)— 9.47 — Forfeited(3,652)— 4.08 — Outstanding at September 30, 202518,123 392 $3.55 $9.43 Employee Stock Purchase Plan ("ESPP")Shares issued under our ESPP were 3,102,930 and 1,906,529 during the nine months ended September 30, 2025 and 2024, respectively. In the first quarter of 2025, an additional 4.0 million shares were reserved under the ESPP. As of September 30, 2025, 15.2 million shares of our common stock remain available for issuance under our ESPP.Share-based CompensationThe following table summarizes share-based compensation expense:Three Months Ended September 30,Nine Months Ended September 30,(In thousands)2025202420252024Cost of revenue$892 $1,229 $2,982 $4,466 Research and development 3,050 4,740 8,964 15,119 Sales, general and administrative7,042 12,290 20,134 35,418 Total share-based compensation expense$10,984 $18,259 $32,080 $55,003 

Q3 Fiscal 2025 Form 10-Q23

Determining Fair ValueWe estimate the fair value of stock options granted using the Black-Scholes valuation method and a single option award approach. When determining the current share prices underlying the stock options for calculating the grant-date fair value, we reference the observable market prices of our stock. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair market value of RSUs and PSUs granted is the closing price of our shares on the date of grant