Company: PACB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001299130-25-000061
Chunk: 524

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1A
Chunk 524
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 points to the discount rate used in our analysis would have resulted in additional IPR&D impairment of approximately $5 million. A decrease of one year to the obsolescence factor used in our analysis would have resulted in additional IPR&D impairment of approximately $5 million. We also performed a recoverability test for the definite-lived asset group, which includes developed technology, noting no impairment.As a result of the impairment, the carrying value of the IPR&D now approximates fair value. Changes in macroeconomic conditions, industry-specific conditions and company-specific conditions may impact the estimates and assumptions used when conducting future IPR&D impairment tests. These changes could affect the estimated fair value of the IPR&D and may result in additional impairment charges in the future.Changes to IPR&D during the year ended December 31, 2024 were as follows:(in thousands)Balance as of December 31, 2023$55,000 Impairment charge(40,000)Balance as of December 31, 2024$15,000 In addition to IPR&D, we had the following acquired finite-lived intangible assets as of December 31, 2024:(in thousands, except years)Estimated Useful Life(in years)GrossCarryingAmountAccumulatedAmortizationNetCarryingAmountDeveloped technology15$411,179 $(36,607)$374,572 Customer relationships2360 (360)— Total$411,539 $(36,967)$374,572 Amortization expense of intangibles was $27.4 million, $8.3 million and $0.9 million for the years ended December 31, 2024, 2023, and 2022, respectively. For the years ended December 31, 2024, 2023, and 2022 amortization expense of intangibles in cost of revenue was $9.4 million, $2.0 million, and $0.7 million, respectively. For the years ended December 31, 2024, 2023, and 2022, amortization expense of intangibles in operating expenses was $18.0 million, $6.3 million, and $0.2 million, respectively.

Fiscal 2024 Form 10-K105

Amortization of acquired intangible assets is included within our cost of revenue if the costs and expenses related to the intangible assets are attributable to revenue generating activities