Company: PACB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001299130-25-000061
Chunk: 496

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1A
Chunk 496
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 approach. Significant assumptions used in the income approach included revenue growth expectations and the selected discount rate.How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process for determining the fair value of the reporting unit and the indefinite-lived intangible asset. This included controls over management’s review of the revenue growth rates and the discount rate. Our audit procedures included, among others, evaluating the Company's valuation methodology and performing a sensitivity analysis of the assumptions to evaluate the change in the fair value resulting from changes in the assumptions to identify the assumptions that have the most significant impact on the fair value amount. We evaluated the reasonableness of projected revenue growth used within the valuations against analyst expectations, industry and market data and other guideline companies within the same industry. We also involved valuation specialists to assist in evaluating the Company’s selection of the discount rates. In addition, we inspected the Company’s reconciliation of the fair value of the reporting unit to the market capitalization of the Company and assessed the results.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2011.

San Mateo, California

March 17, 2025

Fiscal 2024 Form 10-K84

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.CONSOLIDATED BALANCE SHEETS

December 31,(in thousands, except per share amounts)20242023AssetsCurrent assets Cash and cash equivalents $55,370 $179,911 Investments 334,561 451,505 Accounts receivable, net27,524 36,615 Inventory, net58,755 56,676 Prepaid expenses and other current assets 18,781 17,040 Short-term restricted cash690 300 Total current assets 495,681 742,047 Property and equipment, net 30,505 36,432 Operating lease right-of-use assets, net 16,091 32,593 Long-term restricted cash1,532 2,422 Intangible assets, net389,572 456,984 Goodwill317,761 462,261 Other long-term assets 9,305 13,274 Total assets $1,260,447 $1,746,013 Liabilities and Stockholders’ Equity Current liabilitiesAccounts payable $16,590 $15,062 Accrued expenses 22,595 45,708