Company: PACB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001299130-25-000156
Chunk: 78

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 $1.1 million were extinguished by offsetting the carrying amount of the convertible senior notes. Interest expense for the 2028 Notes was as follows: Three Months Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Contractual interest expense$— $1,721 $— $3,442 Amortization of debt issuance costs— 81 — 162 Total interest expense$— $1,802 $— $3,604 

Q2 Fiscal 2025 Form 10-Q19

NOTE 5.  RESTRUCTURING2025 RestructuringIn the first quarter of 2025, we implemented an expense reduction initiative aimed at lowering our annualized run-rate operating expenses. These actions, which included workforce reductions and other cost-saving measures, were part of a broader strategic shift to prioritize the adoption of HiFi sequencing.A summary of the pre-tax restructuring charges are as follows:(In thousands)Three Months Ended June 30, 2025Cumulative amount incurred to dateEmployee separation costs$138 $4,787 Other costs563 563 Total restructuring charges (1)$701 $5,350 (1) Cumulative charges incurred to date include $3.3 million in sales, general and administrative expense and $2.1 million in research and development expense.Charges included employee separation costs comprised of approximately $2.5 million related to salaries, wages and other employee benefits paid to terminated employees pursuant to the Worker Adjustment and Retraining Notification (WARN) Act and approximately $2.3 million of severance costs.Charges included in other costs are primarily related to legal expenses incurred in connection with employee separation matters.In connection with the restructuring and strategic shift, we incurred an additional $388.5 million in costs. These include $359.3 million of accelerated amortization of certain intangible assets, $15.0 million of IPR&D impairment charges, $8.0 million related to excess inventory due to decreased external demand and $3.8 million for estimated losses on purchase commitments tied to anticipated future excess inventory included in cost of revenue, and $2.4 million of accelerated depreciation of fixed assets. See Note 3. Balance Sheet Components for additional information on the IPR&D impairment assessment and the change in estimated useful life of the intangible asset and accelerated amortization.A summary of the liabilities related to the restructuring is as