Company: PACB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001299130-25-000156
Chunk: 19

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 on the condensed consolidated statements of operations and comprehensive loss was $3.4 million and $7.3 million for the three and six months ended June 30, 2025, respectively, and $6.5 million and $13.8 million for the three and six months ended June 30, 2024, respectively.

NOTE 3.  BALANCE SHEET COMPONENTS Inventory, NetOur inventory, net, consisted of the following components:(In thousands)June 30,2025December 31,2024Purchased materials$45,966 $45,270 Work in process26,906 22,172 Finished goods14,754 14,081 Inventory, gross87,626 81,523 Inventory reserve(33,787)(22,768)Inventory, net$53,839 $58,755 Goodwill and Intangible AssetsGoodwillGoodwill is reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Based on quantitative interim impairment tests performed in 2024, we recorded impairment charges of $93.2 million in the second quarter of 2024 and $51.3 million in the fourth quarter of 2024.We conducted a quantitative interim impairment test as of March 31, 2025, based on a decline in stock price and market capitalization during the first quarter of 2025, macroeconomic uncertainties, and revised strategic plans emphasizing HiFi sequencing and discontinuing short-read platform development, and concluded there was no impairment.We completed our annual goodwill impairment assessment on April 1, 2025 and noted no impairment.Changes in our future operating results, cash flows, share price, market capitalization or discount rates used when conducting future goodwill impairment tests could affect the implied fair value of goodwill and may result in additional impairment charges in the future.Intangible AssetsIntangible assets include developed technology, customer relationships, and acquired in-process research and development ("IPR&D"). In connection with the Apton acquisition in August 2023, we allocated $55.0 million of the purchase price to IPR&D. This asset is considered indefinite-lived until the associated research and development activities are either completed or abandoned, and it is tested for impairment annually and more 

Q2 Fiscal 2025 Form 10-Q12

frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired.We recognized a $40.0 million impairment charge