Company: PACB
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001299130-25-000102
Chunk: 215

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 215
---
 expected future cash flows as compared to the fair value as of December 31, 2024, driven by the restructuring initiatives that prioritize accelerating adoption of HiFi sequencing and resulted in ceasing development of our high-throughput short-read sequencing platform. The impairment charge is included on our consolidated statements of operations and comprehensive loss for the three months ended March 31, 2025. Significant estimates and assumptions used in the income approach include timing of future cash flows, revenue growth assumptions, a selected discount rate of 14.0%, and a selected obsolescence factor of 11 years. The discount rate was based primarily on the weighted average cost of capital, determined using market, peer company, industry data, and related risk factors. The assessment is a level 3 measurement due to its reliance on certain unobservable inputs and significant management judgment. The assumptions used were inherently subject to uncertainty and small changes in these assumptions could have had a significant impact on the concluded value. A decrease of 200 basis points to the discount rate used in our analysis would have resulted in an increase in the estimated fair value of the IPR&D of approximately $3 million, and an increase of one year to the obsolescence factor used in our analysis would have resulted in an increase in the estimated fair value of the IPR&D of approximately $3 million. Changes to IPR&D during the three months ended March 31, 2025 were as follows:(In thousands)Balance as of December 31, 2024$15,000 Impairment charge(15,000)Balance as of March 31, 2025$— See Note 5. Restructuring for additional information on costs incurred in connection with our current year restructuring activities.In addition to IPR&D, we had the following acquired finite-lived intangible assets:As of March 31, 2025As of December 31, 2024(In thousands, except years)EstimatedUseful Life(in years)GrossCarryingAmountAccumulatedAmortizationNetCarryingAmountGrossCarryingAmountAccumulatedAmortizationNetCarryingAmountDeveloped technology3 — 15$421,179 $(402,997)$18,182 $411,179 $(36,607)$374,572 Customer relationships2360 (360)— 360 (360)— Total$421,539 $(403,357)$18,182 $411,539 $(36,967)$374,572