Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 63

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 63
---
 2025:(In thousands)Fair ValueDue in one year or less $181,705 Due after one year through five years 64,466 Total$246,171 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.Investment income included in other income, net on the condensed consolidated statements of operations and comprehensive loss was $3.1 million and $10.4 million for the three and nine months ended September 30, 2025, respectively, and $6.0 million and $19.8 million for the three and nine months ended September 30, 2024, respectively.

NOTE 3.  BALANCE SHEET COMPONENTS Inventory, NetOur inventory, net, consisted of the following components:(In thousands)September 30,2025December 31,2024Purchased materials$41,788 $45,270 Work in process25,189 22,172 Finished goods16,435 14,081 Inventory, gross83,412 81,523 Inventory reserve(30,259)(22,768)Inventory, net$53,153 $58,755 Goodwill and Intangible AssetsGoodwillGoodwill is reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Based on quantitative interim impairment tests performed in 2024, we recorded impairment charges of $93.2 million in the second quarter of 2024 and $51.3 million in the fourth quarter of 2024.We conducted a quantitative interim impairment test as of March 31, 2025, based on a decline in stock price and market capitalization during the first quarter of 2025, macroeconomic uncertainties, and revised strategic plans emphasizing HiFi sequencing and discontinuing short-read platform development, and concluded there was no impairment.We completed our annual goodwill impairment assessment on April 1, 2025 and noted no impairment.Changes in our future operating results, cash flows, share price, market capitalization or discount rates used when conducting future goodwill impairment tests could affect the implied fair value of goodwill and may result in additional impairment charges in the future.Intangible AssetsIntangible assets include developed technology, customer relationships, and acquired in-process research and development ("IPR&D"). In connection with the Apton acquisition in August 2023, we allocated $55.0 million of the purchase price to