Company: PCRX
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001396814-25-000061
Chunk: 63

Company: Pacira BioSciences, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 on the second scheduled trading day immediately preceding August 1, 2025. The maximum conversion on the principal that could have been due on the 2025 Notes is 2.8 million shares of the Company’s common stock, which assumes no increase in the conversion rate for certain corporate events.Financial Assets and Liabilities Measured at Fair Value on a Recurring BasisEquity and Convertible Note InvestmentsThe Company holds strategic investments in clinical and preclinical stage privately-held biotechnology companies in the form of equity and convertible note investments. The following investments have no readily determinable fair value and are recorded at cost minus impairment, if any, plus or minus observable price changes of identical or similar investments (in thousands):Equity InvestmentsConvertible Notes ReceivableTotalBalance at December 31, 2023$15,877 $12,134 $28,011 Foreign currency adjustments— (236)(236)Balance at December 31, 202415,877 11,898 27,775 Realized gain of prior investments (1)4,227 1,674 5,901 Settled investments (1)(8,315)(5,322)(13,637)Foreign currency adjustments(39)— (39)Balance at March 31, 2025$11,750 $8,250 $20,000 (1) In conjunction with the GQ Bio Acquisition, the settlement of the Company’s prior equity investment and notes receivable were part of the fair value of consideration exchanged. Upon acquiring the remaining 81% ownership interest in GQ Bio, the Company remeasured its previously held equity interest to its acquisition-date fair value. The $4.2 million gain resulting from the equity investment was recognized as other, net within the condensed consolidated statement of operations. In settling the notes receivable, the Company recognized $1.7 million in interest income. See Note 3, GQ Bio Therapeutics Acquisition, for information on the GQ Bio Acquisition.Acquisition-Related Contingent ConsiderationThe Company has recognized contingent consideration related to the Flexion Acquisition in the amount of $17.6 million and $20.2 million as of March 31, 2025 and December 31, 2024, respectively. The Company’s contingent consideration obligations are recorded at their estimated fair values and are revalued each reporting period if and until the related contingencies are resolved. The Company has measured the fair value of