Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 103

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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ITEM 1A.  RISK FACTORS

You should carefully consider the risks and uncertainties described below, together with all of the other information in our public filings with the SEC, which could materially affect our business, financial condition, results of operations and prospects. The risks described below are not the only risks facing us. Risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition, results of operations and prospects. In addition, any worsening of the economic environment may exacerbate the risks described below, any of which could have a material impact on us. This situation is changing rapidly, and additional impacts may arise that we are not aware of currently.

Summary Risk Factors

The following is a summary of the principal risks that could adversely affect our business, operations, and financial results. Such risks are discussed more fully below and include, but are not limited to, risks related to:

•our ability to successfully market, commercialize, and sell current and future products and related maintenance services;

•our ability to achieve profitability for our business;

•our ability to implement required expense reduction initiatives;

•our ability to repay our debt and fund our long-term operations;

•our ability to successfully leverage and integrate our acquisitions and future acquisitions;

•our ability to successfully research, develop and timely manufacture our current and future products;

•management of new product introductions and transitions, resultant costs, and ability of new products to generate promised performance;

•recent significant changes to our leadership team and resultant disruptions to our business;

•retention, recruitment, and training of senior management, key personnel, scientists and engineers;

•our ability to further penetrate nucleic acid sequencing applications, as well as grow product demand;

•our reliance on outsourcing to other companies for manufacturing certain of our products, components and sub-assemblies, some of which are sole-sourced;

•the impact of tariffs recently imposed by the U.S. government and its trading partners in response, other possible tariffs or trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers;

•our ability to consistently manufacture our instruments and consumables to meet customers’ specifications, quantity, cost, or performance requirements;

•the high amount of competition we face in our industry;

•our ability to attract customers and increase sales of current and future products;

•our reliance on a limited number of customers for a significant portion of our revenues, including academic, research and government institutions, which