Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 264

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 3
Chunk 264
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•our reliance on outsourcing to other companies for manufacturing certain of our products, components and sub-assemblies, some of which are sole-sourced;

•the impact of tariffs recently imposed by the U.S. government and its trading partners in response, other possible tariffs or trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers;

•our ability to consistently manufacture our instruments and consumables to meet customers’ specifications, quantity, cost, or performance requirements;

•the high amount of competition we face in our industry;

•our ability to attract customers and increase sales of current and future products;

•our reliance on a limited number of customers for a significant portion of our revenues, including academic, research and government institutions, which may be impacted by reductions in funding or targeted cancellations of certain grants or contracts by the U.S. federal government;

•the complexity of our products giving rise to defects or errors;

•our unpredictable and lengthy sales cycles;

•the possibility that our goodwill or intangible assets could become impaired;

•adverse effects resulting from political and economic tensions between the United States and other countries, including China and Russia, and other geopolitical uncertainties;

•securing and maintaining patent or other intellectual property protection for our products and related improvements;

•current and future legal proceedings filed against us claiming intellectual property infringement;

Q3 Fiscal 2025 Form 10-Q41

•the potential adverse impact of health epidemics;

•potential cybersecurity incidents and security breaches;

•governmental regulations that burden operations or narrow the market for our products;

•adverse effects resulting from new, increased, or enhanced trade tariffs, import restrictions, export restrictions, or other trade barriers;

•evolving ethical, legal, privacy, social, and regulatory concerns regarding genetic testing;

•volatility of the price of our common stock; and

•our stock price falling as a result of future offerings or sales of securities.

Our risk factors are not guarantees that no such conditions exist as of the date hereof and should not be interpreted as an affirmative statement that such risks or conditions have not materialized, in whole or in part.

Risks Related to Our Business

The commercialization and sales of our current or future products may be unsuccessful or less successful than anticipated. While we plan to continue pursuing new products and expanding into adjacent markets, we have limited experience in managing and selling multiple products and, as a result, may face challenges selling in new markets and fail to successfully carry out these initiatives, which may