Company: PACB
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001299130-25-000102
Chunk: 190

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 190
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. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair market value of RSUs and PSUs granted is the closing price of our shares on the date of grant and is generally recognized as compensation expense on a straight-line basis over the respective vesting period. For shares purchased under our ESPP, we estimate the grant-date fair value, and the resulting share-based compensation expense, using the Black-Scholes option-pricing model. We estimate forfeitures of stock options, RSUs and shares purchased under our ESPP which is utilized to determine the compensation expense to be recorded over the requisite service period.•Expected Term - The expected term used in the Black-Scholes valuation method represents the period that the stock options are expected to be outstanding and is determined based on historical experience of similar awards, considering the contractual terms of the stock options and vesting schedules.•Expected Volatility - The expected volatility used in the Black-Scholes valuation method is derived from the implied volatility related to our share price over the expected term.•Expected Dividend - We have never paid dividends on our shares and, accordingly, the dividend yield percentage is zero for all periods.•Risk-Free Interest Rate - The risk-free interest rate used in the Black-Scholes valuation method is the implied yield currently available on U.S. Treasury constant maturities issued with a term equivalent to the expected terms.The fair value of employee stock options was estimated using the following assumptions:Three Months Ended March 31,20252024Expected term in years4.94.9Expected volatility  95% — 96%81%Risk-free interest rate  3.92% — 4.29%4.32%Dividend yield ——Weighted average grant date fair value per share$0.91$2.45The fair value of shares to be issued under the ESPP was estimated using the following assumptions:Three Months Ended March 31,20252024Expected term in years0.5 — 2.00.5 — 2.0Expected volatility 113%81%Risk-free interest rate 3.96% — 4.31%4.54% — 5.27%Dividend yield ——Weighted average grant date fair value per share$0.93$2.78

NOTE 8.  NET LOSS PER SHAREBasic net loss per share is computed by dividing net loss by the weighted average number of shares of common