Company: PACB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001299130-25-000061
Chunk: 148

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1
Chunk 148
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 Work in process22,172 27,653 Finished goods14,081 15,746 Inventory, gross81,523 75,833 Inventory reserve(22,768)(19,157)Inventory, net$58,755 $56,676 Property and Equipment, NetProperty and equipment, net, consisted of the following components: December 31,(in thousands)20242023Laboratory equipment and machinery $47,273 $44,907 Leasehold improvements33,770 35,226 Computer equipment18,882 19,528 Software7,280 6,628 Furniture and fixtures2,972 3,594 Construction in progress2,276 1,343 Total112,453 111,226 Less: Accumulated depreciation (81,948)(74,794)Property and equipment, net $30,505 $36,432 Construction in progress consists of capitalizable costs that have been incurred for the construction of finite-lived assets and is primarily comprised of amounts that will be classified as lab equipment. Depreciation expense during the years ended December 31, 2024, 2023, and 2022 was $13.8 million, $11.5 million, and $9.5 million, respectively.In connection with the interim impairment test of goodwill in the second and fourth quarter of 2024, we also performed a recoverability test for the definite-lived asset group, which includes property and equipment, noting no impairment.

Fiscal 2024 Form 10-K103

Goodwill and Intangible AssetsGoodwillGoodwill is reviewed for impairment at least annually as of the first day of the second quarter, or more frequently if an event occurs indicating impairment. We performed our annual assessment for goodwill impairment, noting no impairment. Based primarily on the sustained decrease in our stock price during the second quarter and overall market capitalization as of the end of the second quarter of 2024 as well as other factors, we concluded that there was an indicator that it was more likely than not that the fair value of the reporting unit was less than its carrying amount that required an interim impairment test be performed on goodwill. As a result of the interim impairment test performed as of June 30, 2024, we concluded that the carrying amount of the entity-level reporting unit exceeded fair value and recorded $93.2 million of goodwill impairment. The impairment charge is included on our consolidated statements of operations and comprehensive loss for the year