Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 19

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 significant management judgment. The assumptions used were inherently subject to uncertainty and small changes in these assumptions could have had a significant impact on the concluded value. A decrease of 200 basis points to the discount rate used in our analysis would have resulted in an increase in the estimated fair value of the IPR&D of approximately $3 million, and an increase of one year to the obsolescence factor used in our analysis would have resulted in an increase in the estimated fair value of the IPR&D of approximately $3 million. Changes to IPR&D during the nine months ended September 30, 2025 were as follows:(In thousands)Balance as of December 31, 2024$15,000 Impairment charge(15,000)Balance as of September 30, 2025$— See Note 5. Restructuring for additional information on costs incurred in connection with our current year restructuring activities.In addition to IPR&D, we had the following acquired finite-lived intangible assets:As of September 30, 2025As of December 31, 2024(In thousands, except years)EstimatedUseful Life(in years)GrossCarryingAmountAccumulatedAmortizationNetCarryingAmountGrossCarryingAmountAccumulatedAmortizationNetCarryingAmountDeveloped technology3 — 15$421,179 $(405,036)$16,143 $411,179 $(36,607)$374,572 Customer relationships2360 (360)— 360 (360)— Total$421,539 $(405,396)$16,143 $411,539 $(36,967)$374,572 

Q3 Fiscal 2025 Form 10-Q13

The estimated future amortization expense of intangible assets with finite lives is as follows:(In thousands)Remainder of 2025$1,020 20264,078 20274,078 20281,301 2029745 2030 and thereafter4,921 Total$16,143 Amortization of acquired intangible assets is included within our cost of revenue if the costs and expenses related to the intangible assets are attributable to revenue generating activities. Amortization expense for intangible assets that are not directly related to sales generating activities are amortized to operating expenses. For developed technology intangible assets that are utilized in both revenue generating activities and in research and development activities, we allocate the amortization expense between cost of