Company: PACB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001299130-25-000156
Chunk: 22

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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30, 2025.We review finite-lived intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. In the first quarter of 2025, as part of our interim goodwill impairment test, we also performed a recoverability test for the definite-lived asset group and noted no impairment.On March 7, 2025, the Company entered into an agreement to acquire certain developed technology and related intellectual property from The Chinese University of Hong Kong for total consideration of $9.7 million. In addition, the Company entered into a license agreement for complementary developed technology during the three months ended March 31, 2025. Both the acquired technology and license are classified as intangible assets and are being amortized over an estimated useful life of three years. As of June 30, 2025, $5.0 million of these intangible assets remained unpaid. This amount is included in accrued liabilities on the condensed consolidated balance sheets and is expected to be paid in 2026.See Note 5. Restructuring for additional information on costs incurred in connection with our current year restructuring activities.Deferred RevenueAs of June 30, 2025, we had a total of $20.6 million of deferred revenue, $14.9 million of which was recorded as deferred revenue, current, and $5.7 million of which was recorded as deferred revenue, non-current, which primarily relates to deferred service contract revenues and is scheduled to be recognized in the next four years. Revenue recorded in the three and six months ended June 30, 2025 includes $4.8 million and $9.4 million, respectively, that was included in deferred revenue as of December 31, 2024.Performance ObligationsWe regularly enter into contracts with multiple performance obligations. These contracts are believed to be firm as of the balance sheet date. However, we may allow customers to make product substitutions or certain modifications at our discretion. The timing of shipments depends on several factors, including agreed upon shipping schedules, which may span multiple quarters. Most performance obligations are generally satisfied within a year of the contract execution date. As of June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $56.6 million, of which approximately 72% is expected to be converted to revenue over the next twelve months, approximately 22% in the following twelve months, and the remainder thereafter.

Q2