Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 16

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 of the high-throughput short-read products and services leveraging Apton's technology. Primarily due to management's decision to cease development of the high-throughput short-read system, and the resulting changes in the expected future revenues, among other factors, and as the milestone event must occur prior to the five-year anniversary of the closing date of the acquisition, the estimated fair value of the contingent consideration liability is $0. An increase in the fair value of the liability may result from an acceleration in the timing of or increase in projected revenues and from a 

Q3 Fiscal 2025 Form 10-Q10

decrease in discount rates, including the risk-free rate and estimated subordinated credit spread for a CCC credit rating.Changes in the estimated fair value of the contingent consideration liability during the nine months ended September 30, 2025 were as follows:(In thousands)Level 3Beginning balance as of December 31, 2024$18,700 Change in estimated fair value(18,700)Ending balance as of September 30, 2025$— Changes to the fair value are recorded as change in fair value of contingent consideration in the condensed consolidated statements of operations and comprehensive loss.Cash, Cash Equivalents, Restricted Cash, and InvestmentsThe following tables summarize our cash, cash equivalents, restricted cash, and investments:As of September 30, 2025(In thousands)AmortizedCost GrossunrealizedgainsGrossunrealizedlossesFairValueCash and cash equivalents$56,467 $— $— $56,467 Investments:Corporate debt securities 23,298 123 (1)23,420 U.S. government & agency securities218,475 309 (17)218,767 Total investments 241,773 432 (18)242,187 Total cash, cash equivalents and investments $298,240 $432 $(18)$298,654 Short-term restricted cash$300 $— $— $300 Long-term restricted cash$1,532 $— $— $1,532 As of December 31, 2024(In thousands)AmortizedCostGrossunrealizedgainsGrossunrealizedlossesFairValueCash and cash equivalents$55,370 $— $— $55,370 Investments:Corporate debt securities46,746 184 (25)46,905 U.S. government