Company: PACB
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001299130-25-000102
Chunk: 217

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 217
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2025 remained unpaid, is included in accrued liabilities on the condensed consolidated balance sheets, and is expected to be paid in 2026.In the first quarter of 2025, as part of our interim goodwill impairment test, we also performed a recoverability test for the definite-lived asset group noting no impairment.See Note 5. Restructuring for additional information on costs incurred in connection with our current year restructuring activities.Deferred RevenueAs of March 31, 2025, we had a total of $21.1 million of deferred revenue, $15.2 million of which was recorded as deferred revenue, current, and $5.9 million of which was recorded as deferred revenue, non-current, which primarily relates to deferred service contract revenues and is scheduled to be recognized in the next five years. Revenue recorded in the three months ended March 31, 2025 includes $4.6 million that was included in deferred revenue as of December 31, 2024. 

Q1 Fiscal 2025 Form 10-Q15

Performance ObligationsWe regularly enter into contracts with multiple performance obligations. These contracts are believed to be firm as of the balance sheet date. However, we may allow customers to make product substitutions or certain modifications at our discretion. The timing of shipments depends on several factors, including agreed upon shipping schedules, which may span multiple quarters. Most performance obligations are generally satisfied within a year of the contract execution date. As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $58.7 million, of which approximately 70% is expected to be converted to revenue over the next twelve months, approximately 23% in the following twelve months, and the remainder thereafter.Product WarrantiesWe generally provide a one-year warranty on instruments. In addition, we provide a limited warranty on consumables. At the time revenue is recognized, an accrual is established for estimated warranty costs based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranties are recorded as part of accrued expenses on the condensed consolidated balance sheets and warranty expense is recorded as a component of cost of product revenue in the condensed consolidated statements of operations and comprehensive loss. There were no material changes in estimates for the periods presented below. Changes in the reserve for product warranties were as follows for the periods indicated:Three