Company: PACB
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001299130-25-000061
Chunk: 152

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1
Chunk 152
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, 2023, and 2022, respectively. For the years ended December 31, 2024, 2023, and 2022 amortization expense of intangibles in cost of revenue was $9.4 million, $2.0 million, and $0.7 million, respectively. For the years ended December 31, 2024, 2023, and 2022, amortization expense of intangibles in operating expenses was $18.0 million, $6.3 million, and $0.2 million, respectively.

Fiscal 2024 Form 10-K105

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 revenue and operating expenses. The finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives.The estimated future amortization expense of acquisition-related intangible assets with finite lives is estimated as follows:(in thousands)2025$27,412 202627,412 202727,412 202827,412 202927,412 2030 and thereafter237,512 Total$374,572 Accrued ExpensesAccrued expenses consisted of the following components: December 31,(in thousands)20242023Salaries and benefits$11,706 $29,337 Accrued interest payable2,470 2,834 Accrued purchase commitments— 2,613 Accrued product development costs1,111 1,033 Accrued professional services and legal fees824 2,641 Inventory accrual1,237 353 Warranty accrual3,100 4,681 Other 2,147 2,216 Accrued expenses $22,595 $45,708 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