Company: PACB
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001299130-25-000102
Chunk: 189

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 189
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PSU")We issue RSUs for which the respective shares vest when the requisite service period is achieved. We issue PSUs for which the number of shares issuable is based on performance relative to specified revenue targets and continued employment through the vesting period. The PSUs are issuable following the third year of the performance period. Maximum achievement of the revenue goal under the PSUs will result in up to 200% of the target number of shares subject to the PSUs to become eligible 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 Granted11,618 — 1.25 — Vested(3,870)— 9.51 — Forfeited(552)— 5.79 — Outstanding at March 31, 202521,407 392 $3.73 $9.43 Employee Stock Purchase Plan ("ESPP")Shares issued under our ESPP were 1,752,417 and 1,194,436 during the three months ended March 31, 2025 and 2024, respectively. In the first quarter of 2025, an additional 4.0 million shares were reserved under the ESPP. As of March 31, 2025, 16.5 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 March 31,(In thousands)20252024Cost of revenue$1,165 $2,106 Research and development 2,607 5,788 Sales, general and administrative5,429 11,631 Total share-based compensation expense$9,201 $19,525 

Q1 Fiscal 2025 Form 10-Q25

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