Company: PACB
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001299130-25-000102
Chunk: 184

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 184
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 Fiscal 2025 Form 10-Q20

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 March 31, 2025Cumulative amount incurred to dateEmployee separation costs (1)$4,649 $4,649 Total restructuring charges$4,649 $4,649 (1) $2.5 million was recorded in sales, general and administrative expense and $2.1 million in research and development expense.Charges included employee separation costs comprised of approximately $2.4 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 $2.2 million of severance costs.In connection with the restructuring and strategic shift, we incurred an additional $388.2 million in costs. These include $359.3 million of accelerated amortization of certain intangible assets, $15.0 million of IPR&D impairment charges, $7.7 million related to excess inventory due to decreased external demand and $3.8 million for estimated losses on purchase commitments tied to anticipated future excess inventory included in cost of revenue, and $2.4 million of accelerated depreciation of fixed assets. See Note 3. Balance Sheet Components for additional information on the IPR&D impairment assessment and the change in estimated useful life of the intangible asset and accelerated amortization.A summary of the liabilities related to the restructuring is as follows:(In thousands, excluding non-cash activities)Employee Separation CostsTotalExpense recorded in Q1 2025$4,649 $4,649 Cash paid in Q1 2025— — Amount recorded in current liabilitiesas of March 31, 2025$4,649 $4,649 Estimated total restructuring costs to still be incurred$— $— 

Q1 Fiscal 2025 Form 10-Q21

2024 RestructuringIn the second quarter of 2024, we implemented an expense reduction initiative that included workforce reductions, the closing of our San Diego office, and other actions to reduce annualized run-rate operating