Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 76

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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8 Notes outstanding for (i) $200.0 million aggregate principal amount of the 2029 Notes, (ii) the Exchange Shares and (iii) $50.0 million of cash. As of December 31, 2024 no amounts were outstanding on the 2028 Notes.We incurred issuance costs related to the 2028 Notes of approximately $4.5 million, which were recorded as debt issuance costs and are presented as a reduction to the 2028 Notes on our consolidated balance sheets. The debt issuance costs were amortized to interest expense using the effective interest method over the term of the 2028 Notes, resulting in an effective interest rate of 1.6%. In connection with the 2024 Exchange Transaction, the remaining unamortized debt issuance costs related to the 2028 Notes of $1.1 million were extinguished by offsetting the carrying amount of the convertible senior notes. Interest expense for the 2028 Notes was as follows: Three Months Ended September 30,Nine Months Ended September 30,(in thousands)2025202420252024Contractual interest expense$— $1,721 $— $5,163 Amortization of debt issuance costs— 81 — 243 Total interest expense$— $1,802 $— $5,406 

Q3 Fiscal 2025 Form 10-Q19

NOTE 5.  RESTRUCTURING2025 RestructuringIn the first quarter of 2025, we implemented an expense reduction initiative aimed at lowering our annualized run-rate operating expenses. These actions, which included workforce reductions and other cost-saving measures, were part of a broader strategic shift to prioritize the adoption of HiFi sequencing.A summary of the pre-tax restructuring charges are as follows:(In thousands)Three Months Ended September 30, 2025Cumulative amount incurred to dateEmployee separation costs$— $4,787 Other costs66 629 Total restructuring charges (1)$66 $5,416 (1) Cumulative charges incurred to date include $3.3 million in sales, general and administrative expense and $2.1 million in research and development expense.Charges included employee separation costs comprised of approximately $2.5 million related to salaries, wages and other employee benefits paid to terminated employees pursuant to the Worker Adjustment and Retraining Notification (WARN) Act and approximately $2.3 million of severance costs.Ch