2019 Q4 Form 10-Q Financial Statement

#000129913019000053 Filed on November 07, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2018 Q3
Revenue $27.93M $21.92M $18.16M
YoY Change 43.04% 20.68% -22.87%
Cost Of Revenue $15.00M $15.00M $14.97M
YoY Change 8.85% 0.22% -2.28%
Gross Profit $12.93M $6.914M $3.192M
YoY Change 125.06% 116.6% -61.2%
Gross Profit Margin 46.3% 31.55% 17.58%
Selling, General & Admin $16.58M $20.07M $13.51M
YoY Change -17.55% 48.57% -3.2%
% of Gross Profit 128.21% 290.22% 423.12%
Research & Development $14.27M $14.96M $14.36M
YoY Change -12.24% 4.22% -9.39%
% of Gross Profit 110.35% 216.4% 449.75%
Depreciation & Amortization $1.790M $1.890M $1.830M
YoY Change 0.56% 3.28% 2.23%
% of Gross Profit 13.84% 27.34% 57.33%
Operating Expenses $30.85M $35.03M $27.86M
YoY Change -15.18% 25.72% -6.49%
Operating Profit -$17.92M -$28.11M -$24.67M
YoY Change -41.49% 13.96% 14.38%
Interest Expense -$680.0K $664.0K $616.0K
YoY Change 7.94% 7.79% -2.69%
% of Operating Profit
Other Income/Expense, Net $500.0K -$345.0K $242.0K
YoY Change 11.11% -242.56% 33.7%
Pretax Income -$90.00K -$29.12M -$25.04M
YoY Change -99.71% 16.29% 13.71%
Income Tax
% Of Pretax Income
Net Earnings -$91.00K -$29.12M -$25.04M
YoY Change -99.7% 16.29% 13.73%
Net Earnings / Revenue -0.33% -132.89% -137.91%
Basic Earnings Per Share
Diluted Earnings Per Share -$588.00 -$190.4K -$185.3K
COMMON SHARES
Basic Shares Outstanding 153.0M 153.0M
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q4 2019 Q3 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $60.08M $63.78M $123.4M
YoY Change -40.43% -48.33% 46.96%
Cash & Equivalents $29.63M $33.08M $38.06M
Short-Term Investments $30.46M $30.70M $85.38M
Other Short-Term Assets $3.400M $2.700M $2.000M
YoY Change 21.43% 35.0% -23.08%
Inventory $13.31M $15.07M $19.69M
Prepaid Expenses
Receivables $15.27M $9.966M $6.404M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $81.05M $76.94M $143.9M
YoY Change -38.44% -46.52% 26.65%
LONG-TERM ASSETS
Property, Plant & Equipment $30.07M $31.62M $34.49M
YoY Change -11.75% -8.33% -12.9%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $42.00K $41.00K $43.00K
YoY Change -2.33% -4.65% -99.09%
Total Long-Term Assets $66.94M $69.17M $39.03M
YoY Change 73.35% 77.21% -11.89%
TOTAL ASSETS
Total Short-Term Assets $81.05M $76.94M $143.9M
Total Long-Term Assets $66.94M $69.17M $39.03M
Total Assets $148.0M $146.1M $182.9M
YoY Change -13.09% -20.12% 15.84%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.368M $8.111M $5.966M
YoY Change 24.23% 35.95% -30.63%
Accrued Expenses $13.24M $15.82M $9.298M
YoY Change 3.27% 70.18% -16.98%
Deferred Revenue $7.600M $6.379M
YoY Change 16.26%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $15.90M $15.50M
YoY Change
Total Short-Term Liabilities $49.15M $50.69M $21.65M
YoY Change 82.83% 134.16% -28.55%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $14.40M
YoY Change -100.0% -100.0% 37.14%
Other Long-Term Liabilities $43.90M $44.40M $15.00M
YoY Change 198.64% 196.0% -4.46%
Total Long-Term Liabilities $43.90M $44.40M $29.40M
YoY Change 49.32% 51.02% 12.21%
TOTAL LIABILITIES
Total Short-Term Liabilities $49.15M $50.69M $21.65M
Total Long-Term Liabilities $43.90M $44.40M $29.40M
Total Liabilities $93.07M $95.10M $51.03M
YoY Change 65.56% 86.37% -9.69%
SHAREHOLDERS EQUITY
Retained Earnings -$1.066B -$1.066B -$951.3M
YoY Change 8.57% 12.07%
Common Stock $153.0K $153.0K $149.0K
YoY Change 2.0% 2.68%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $54.92M $51.01M $131.9M
YoY Change
Total Liabilities & Shareholders Equity $148.0M $146.1M $182.9M
YoY Change -13.09% -20.12% 15.84%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2018 Q3
OPERATING ACTIVITIES
Net Income -$91.00K -$29.12M -$25.04M
YoY Change -99.7% 16.29% 13.73%
Depreciation, Depletion And Amortization $1.790M $1.890M $1.830M
YoY Change 0.56% 3.28% 2.23%
Cash From Operating Activities -$18.18M -$17.26M -$14.18M
YoY Change -4.21% 21.72% -20.52%
INVESTING ACTIVITIES
Capital Expenditures -$140.0K -$830.0K -$100.0K
YoY Change 180.0% 730.0% -96.92%
Acquisitions
YoY Change
Other Investing Activities -$3.270M $20.49M -$37.25M
YoY Change -40.0% -155.01% -557.62%
Cash From Investing Activities -$3.410M $19.66M -$37.34M
YoY Change -38.22% -152.65% -865.16%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 18.13M 330.0K 66.52M
YoY Change 243.37% -99.5% 2671.67%
NET CHANGE
Cash From Operating Activities -18.18M -17.26M -14.18M
Cash From Investing Activities -3.410M 19.66M -37.34M
Cash From Financing Activities 18.13M 330.0K 66.52M
Net Change In Cash -3.460M 2.730M 15.00M
YoY Change -82.0% -81.8% -242.05%
FREE CASH FLOW
Cash From Operating Activities -$18.18M -$17.26M -$14.18M
Capital Expenditures -$140.0K -$830.0K -$100.0K
Free Cash Flow -$18.04M -$16.43M -$14.08M
YoY Change -4.7% 16.69% -3.5%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2019
dei Document Period End Date
DocumentPeriodEndDate
2019-09-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0001299130
CY2019Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
153033732
dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
false
dei Entity Filer Category
EntityFilerCategory
Accelerated Filer
dei Entity Interactive Data Current
EntityInteractiveDataCurrent
Yes
dei Entity Registrant Name
EntityRegistrantName
PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
dei Entity Shell Company
EntityShellCompany
false
dei Entity Small Business
EntitySmallBusiness
false
dei Security12b Title
Security12bTitle
Common Stock, par value $0.001 per share
dei Security Exchange Name
SecurityExchangeName
NASDAQ
dei Trading Symbol
TradingSymbol
PACB
CY2019Q3 pacb Additional Liability Associated With Indemnification Obligations
AdditionalLiabilityAssociatedWithIndemnificationObligations
0
CY2017Q3 pacb Amount Of Common Stock Preferred Stock Depository Shares Warrants Units Or Debt Securities Available In Future Public Offerings
AmountOfCommonStockPreferredStockDepositorySharesWarrantsUnitsOrDebtSecuritiesAvailableInFuturePublicOfferings
150000000
CY2018Q4 pacb Available For Sale Securities Gross Unrealized Gain Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments
3000
CY2019Q3 pacb Available For Sale Securities Gross Unrealized Gain Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments
11000
CY2018Q4 pacb Available For Sale Securities Gross Unrealized Loss Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments
39000
CY2019Q3 pacb Available For Sale Securities Gross Unrealized Loss Accumulated In Investments
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments
CY2018Q4 pacb Cash Cash Equivalents And Investments Excluding Restricted Cash
CashCashEquivalentsAndInvestmentsExcludingRestrictedCash
102400000
CY2019Q3 pacb Cash Cash Equivalents And Investments Excluding Restricted Cash
CashCashEquivalentsAndInvestmentsExcludingRestrictedCash
49200000
CY2017Q3 pacb Common Stock Preferred Stock Depository Shares Warrants Units Or Debt Securities Available In Future Public Offerings Period From Effective Date
CommonStockPreferredStockDepositorySharesWarrantsUnitsOrDebtSecuritiesAvailableInFuturePublicOfferingsPeriodFromEffectiveDate
P3Y
CY2019Q3 pacb Debt Instrument Interest And Discount
DebtInstrumentInterestAndDiscount
1298000
CY2019Q3 pacb Fair Value Assets Liabilities Transfer Between Levels
FairValueAssetsLiabilitiesTransferBetweenLevels
0
pacb Inventory Transferred From Property And Equipment
InventoryTransferredFromPropertyAndEquipment
-1228000
CY2019Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
4062000
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-83996000
CY2019Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-29129000
CY2018Q3 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
14968000
us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
41317000
CY2019Q3 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
15001000
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
749000
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
887000
CY2018Q4 us-gaap Assets
Assets
170275000
CY2019Q3 us-gaap Assets
Assets
146110000
CY2018Q4 us-gaap Assets Current
AssetsCurrent
131659000
CY2019Q3 pacb Long Term Debt Maturities Repayments Of Debt Including Interest And Principal
LongTermDebtMaturitiesRepaymentsOfDebtIncludingInterestAndPrincipal
16844000
pacb Merger Agreement Continuation Advances Repayable Minimum Company Must Raise In Equity Or Debt Financing In Single Transaction
MergerAgreementContinuationAdvancesRepayableMinimumCompanyMustRaiseInEquityOrDebtFinancingInSingleTransaction
100000000
pacb Merger Agreement Period In Which Company Must Repay Continuation Advances If Change Of Controll Transaction Is Entered Into With Third Party
MergerAgreementPeriodInWhichCompanyMustRepayContinuationAdvancesIfChangeOfControllTransactionIsEnteredIntoWithThirdParty
P2Y
pacb Merger Agreement Possible Termination Fee
MergerAgreementPossibleTerminationFee
43000000
pacb Net Cash Provided By Used In Operating Activities Excluding Restricted Cash
NetCashProvidedByUsedInOperatingActivitiesExcludingRestrictedCash
60100000
pacb Operating Lease Right Of Use Asset Amortization
OperatingLeaseRightOfUseAssetAmortization
1954000
pacb Proceeds From Issuance Of Common Stock Net Of Issuance Costs
ProceedsFromIssuanceOfCommonStockNetOfIssuanceCosts
97722000
CY2019Q3 pacb Reverse Termination Fee Receivable Required Upon Termination Of Merger Agreement Under Certain Specified Circumstances
ReverseTerminationFeeReceivableRequiredUponTerminationOfMergerAgreementUnderCertainSpecifiedCircumstances
98000000
CY2019Q3 pacb Share Based Compensation Arrangements By Share Based Payment Awards Number Of Active Plans
ShareBasedCompensationArrangementsByShareBasedPaymentAwardsNumberOfActivePlans
3
pacb Transfer Of Inventory To Property And Equipment
TransferOfInventoryToPropertyAndEquipment
664000
pacb Transfer Of Inventory To Property And Equipment
TransferOfInventoryToPropertyAndEquipment
1784000
CY2018Q4 pacb Weighted Average Market Yield Percentage
WeightedAverageMarketYieldPercentage
0.096
CY2019Q3 pacb Weighted Average Market Yield Percentage
WeightedAverageMarketYieldPercentage
0.077
CY2018Q4 us-gaap Accounts Payable Current
AccountsPayableCurrent
6736000
CY2019Q3 us-gaap Accounts Payable Current
AccountsPayableCurrent
8111000
CY2018Q4 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
8595000
CY2019Q3 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
9966000
CY2018Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
12823000
CY2019Q3 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
15823000
CY2018Q4 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
-36000
CY2019Q3 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
11000
CY2018Q4 us-gaap Additional Paid In Capital
AdditionalPaidInCapital
1096053000
CY2019Q3 us-gaap Additional Paid In Capital
AdditionalPaidInCapital
1116999000
us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
15631000
CY2018Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
5126000
us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
12532000
CY2019Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
4062000
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
15631000
CY2018Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
5125000
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
12532000
CY2019Q3 us-gaap Assets Current
AssetsCurrent
76941000
CY2018Q4 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
106854000
CY2019Q3 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
53204000
CY2018Q4 us-gaap Available For Sale Securities
AvailableForSaleSecurities
102354000
CY2019Q3 us-gaap Available For Sale Securities
AvailableForSaleSecurities
49204000
CY2018Q4 us-gaap Available For Sale Securities Amortized Cost
AvailableForSaleSecuritiesAmortizedCost
102390000
CY2019Q3 us-gaap Available For Sale Securities Amortized Cost
AvailableForSaleSecuritiesAmortizedCost
49193000
CY2019Q3 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
30699000
CY2019Q3 us-gaap Available For Sale Securities Debt Securities Current
AvailableForSaleSecuritiesDebtSecuritiesCurrent
30699000
us-gaap Basis Of Accounting
BasisOfAccounting
<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:13.5pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-style:italic;font-size:10pt;">Basis of Presentation and Consolidation </font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">In the opinion of management, our accompanying unaudited Condensed Consolidated Financial Statements (&#x201C;Financial Statements&#x201D;) have been prepared on a consistent basis with our December&nbsp;31, 2018 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. The Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (&#x201C;SEC&#x201D;) and, as permitted by such rules and regulations, omit certain information and footnote disclosures necessary to present the statements in accordance with </font><font style="display: inline;color:#000000;font-size:10pt;">accounting principles generally accepted in the United States</font><font style="display: inline;font-size:10pt;"> (&#x201C;U.S. GAAP&#x201D;). These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December&nbsp;31, 2018. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire year or any future periods.</font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">The consolidated financial statements include the accounts of Pacific Biosciences and our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. </font> </p> <p><font size="1"> </font></p> </div> </div>
CY2018Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
38063000
CY2018Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
18844000
CY2019Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
33084000
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
21007000
CY2018Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
42563000
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
23344000
CY2019Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
37084000
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
21556000
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
13740000
CY2018Q4 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
CY2019Q3 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
CY2018Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2019Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2018Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
1000000000
CY2019Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
1000000000
CY2019Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
153031000
CY2018Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
150244000
CY2019Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
153031000
CY2018Q4 us-gaap Common Stock Value
CommonStockValue
150000
CY2019Q3 us-gaap Common Stock Value
CommonStockValue
153000
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-71755000
CY2018Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-25052000
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:4.5pt 0pt 0pt;text-indent:0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-style:italic;">Concentration and Other Risks </font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:31.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">For the three and nine months ended September 30, 2019, </font><font style="display: inline;font-size:10pt;">one</font><font style="display: inline;font-size:10pt;"> of our customers, Gene Company Limited, accounted for </font><font style="display: inline;font-size:10pt;">approximately </font><font style="display: inline;font-size:10pt;">18%</font><font style="display: inline;font-size:10pt;"> and </font><font style="display: inline;font-size:10pt;">14%</font><font style="display: inline;font-size:10pt;"> of our total revenue, respectively. For the three and nine months ended September 30, 2018, </font><font style="display: inline;font-size:10pt;">one</font><font style="display: inline;font-size:10pt;"> of our customers, Gene Company</font><font style="display: inline;font-size:10pt;"> Limited, accounted for approximately </font><font style="display: inline;font-size:10pt;">20%</font><font style="display: inline;font-size:10pt;"> and </font><font style="display: inline;font-size:10pt;">28%</font><font style="display: inline;font-size:10pt;"> of our total revenue, respectively. Gene Company Limited is our distributor in China.&nbsp; </font> </p> <p><font size="1"> </font></p> </div> </div>
CY2018Q4 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
6537000
CY2018Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.19
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.55
CY2019Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.19
CY2018Q3 us-gaap Gross Profit
GrossProfit
3192000
us-gaap Gross Profit
GrossProfit
21644000
CY2019Q3 us-gaap Gross Profit
GrossProfit
6914000
CY2018Q3 us-gaap Interest Expense
InterestExpense
616000
CY2019Q1 us-gaap Legal Fees
LegalFees
300000
CY2019Q3 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
6379000
CY2018Q4 us-gaap Contract With Customer Liability Noncurrent
ContractWithCustomerLiabilityNoncurrent
890000
CY2019Q3 us-gaap Contract With Customer Liability Noncurrent
ContractWithCustomerLiabilityNoncurrent
1435000
us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
39750000
CY2018Q4 us-gaap Deferred Rent Credit Noncurrent
DeferredRentCreditNoncurrent
13765000
us-gaap Depreciation
Depreciation
5436000
us-gaap Depreciation
Depreciation
5483000
CY2018Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
16000
CY2018Q4 us-gaap Derivative Liabilities Noncurrent
DerivativeLiabilitiesNoncurrent
16000
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.55
CY2018Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
16000
CY2019Q3 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
0
us-gaap Gain Loss On Sale Of Derivatives
GainLossOnSaleOfDerivatives
155000
us-gaap Gain Loss On Sale Of Derivatives
GainLossOnSaleOfDerivatives
16000
us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-144000
us-gaap Gross Profit
GrossProfit
19350000
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-2926000
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
1454000
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-7029000
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
1371000
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-3497000
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
3000000
us-gaap Increase Decrease In Contract With Customer Asset
IncreaseDecreaseInContractWithCustomerAsset
638000
us-gaap Increase Decrease In Contract With Customer Asset
IncreaseDecreaseInContractWithCustomerAsset
-387000
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-3014000
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-2255000
us-gaap Increase Decrease In Other Current Liabilities
IncreaseDecreaseInOtherCurrentLiabilities
-464000
us-gaap Increase Decrease In Other Current Liabilities
IncreaseDecreaseInOtherCurrentLiabilities
322000
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-537000
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-238000
us-gaap Interest Expense
InterestExpense
1795000
us-gaap Interest Expense
InterestExpense
1933000
CY2019Q3 us-gaap Interest Expense
InterestExpense
664000
CY2018Q4 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
4315000
CY2019Q3 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
6000000
CY2018Q4 us-gaap Inventory Net
InventoryNet
17878000
CY2019Q3 us-gaap Inventory Net
InventoryNet
15067000
CY2018Q4 us-gaap Inventory Raw Materials Net Of Reserves
InventoryRawMaterialsNetOfReserves
6222000
CY2019Q3 us-gaap Inventory Raw Materials Net Of Reserves
InventoryRawMaterialsNetOfReserves
5193000
CY2018Q4 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
7341000
CY2019Q3 us-gaap Inventory Work In Process Net Of Reserves
InventoryWorkInProcessNetOfReserves
3874000
us-gaap Investment Income Net Amortization Of Discount And Premium
InvestmentIncomeNetAmortizationOfDiscountAndPremium
398000
us-gaap Investment Income Net Amortization Of Discount And Premium
InvestmentIncomeNetAmortizationOfDiscountAndPremium
821000
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
62937000
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
31518000
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
7704000
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
7488000
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
7305000
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
7150000
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
1772000
CY2019Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
16245000
us-gaap Operating Expenses
OperatingExpenses
104272000
CY2019Q3 us-gaap Operating Expenses
OperatingExpenses
35028000
CY2018Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-24670000
us-gaap Operating Income Loss
OperatingIncomeLoss
-82628000
CY2019Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-28114000
CY2018Q4 us-gaap Liabilities
Liabilities
56214000
CY2019Q3 us-gaap Liabilities
Liabilities
95096000
CY2018Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
170275000
CY2019Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
146110000
CY2018Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
242000
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
518000
CY2019Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-345000
CY2019Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2018Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
50000000
CY2018Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
14356000
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
45357000
CY2019Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
14962000
CY2018Q4 us-gaap Liabilities Current
LiabilitiesCurrent
26884000
CY2019Q3 us-gaap Liabilities Current
LiabilitiesCurrent
50693000
CY2018Q4 us-gaap Liabilities Fair Value Disclosure
LiabilitiesFairValueDisclosure
16000
CY2019Q3 us-gaap Long Term Debt
LongTermDebt
15546000
CY2019Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
16491000
CY2019Q3 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear
353000
CY2018Q4 us-gaap Long Term Notes Payable
LongTermNotesPayable
14659000
CY2019Q3 us-gaap Loss Contingency Accrual Carrying Value Current
LossContingencyAccrualCarryingValueCurrent
300000
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:13.5pt 0pt 0pt;text-align:justify;text-justify:inter-ideograph;font-weight:bold;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">NOTE 6. COMMITMENTS AND CONTINGENCIES&nbsp; </font> </p> <p style="margin:13.5pt 0pt 0pt;font-family:Times New Roman;font-size: 11pt"> <font style="display: inline;font-weight:bold;font-style:italic;">Leases</font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:31.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">As of January 1, 2019, we leased approximately </font><font style="display: inline;font-size:10pt;">180,000</font><font style="display: inline;font-size:10pt;"> square feet in 1305 O&#x2019;Brien Drive, Menlo Park, California, where we house our headquarters, research and development, service and support functions, and our in-house manufacturing operations for which the right of use assets totaled </font><font style="display: inline;font-size:10pt;">$35.3</font><font style="display: inline;font-size:10pt;"> million. We also leased a sales office facility in Singapore and engineering support facilities in Allen, Texas for which the right of use assets totaled </font><font style="display: inline;font-size:10pt;">$0.2</font><font style="display: inline;font-size:10pt;"> million as of January 1, 2019. </font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:31.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">All our leases are operating leases. Operating lease assets and liabilities are reflected within &#x201C;Operating lease right-of-use assets, net&#x201D;, &#x201C;Operating lease liabilities, current&#x201D; and &#x201C;Operating lease liabilities, non-current&#x201D; on the condensed consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining minimum lease payments over the lease term using our estimated secured incremental borrowing rates at the effective date of January 1, 2019. Lease payments included in the measurement of the lease liability comprise the base rent per the term of the Lease. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments, such as common area maintenance fees, recognized in the period those payments are incurred. </font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:31.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">We often have options to renew lease terms for buildings. For our 1305 O&#x2019;Brien lease, the renewal option is </font><font style="display: inline;font-size:10pt;">5</font><font style="display: inline;font-size:10pt;"> years and the rent will be based on fair market value at the time of renewal and was not included in the lease term. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of September 30, 2019 </font><font style="display: inline;font-size:10pt;">w</font><font style="display: inline;font-size:10pt;">as </font><font style="display: inline;font-size:10pt;">8.1</font><font style="display: inline;font-size:10pt;"> years</font><font style="display: inline;font-size:10pt;">.</font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:31.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure our operating lease liabilities as of September 30, 2019 was </font><font style="display: inline;font-size:10pt;">7.9%</font><font style="display: inline;font-size:10pt;">.</font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:31.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">The following table presents information at the amount, timing and uncertainty of cash flows arising from our operating leases as of September 30, 2019:</font> </p> <p style="margin:0pt;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;font-family:Times New Roman;font-size: 1pt"> <font style="display: inline;font-size:1pt;">&#xFEFF;</font> </p> <p style="margin:0pt;font-family:Times New Roman;font-size: 1pt"> <font style="display: inline;font-size:1pt;">&#xFEFF;</font> </p> <p style="margin:0pt;font-family:Times New Roman;font-size: 1pt"> <font style="display: inline;font-size:1pt;">&#xFEFF;</font> </p> <div style="width:100%"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width: 100.00%;margin-left:0pt;"> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #auto;height:1.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;height:1.00pt;overflow:hidden;font-size: 1pt"> <font style="display: inline;font-size:1pt;">&#xFEFF;</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #auto;height:1.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;height:1.00pt;overflow:hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #auto;height:1.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;height:1.00pt;overflow:hidden;font-size:0pt;"> &nbsp;</p> </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #auto;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-weight:bold;font-size:10pt;">Maturity of Lease Liabilities</font></p> </td> <td colspan="2" valign="middle" style="width:00.02%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;background-color: #auto;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;text-align:center;font-family:Times New Roman;font-size: 8pt"> <font style="display: inline;font-weight:bold;font-size:8pt;">Amount </font></p> </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #auto;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 8pt"> <font style="display: inline;font-weight:bold;font-size:8pt;">&#xFEFF;</font><font style="display: inline;font-weight:bold;font-size:8pt;">Years ending December 31,</font></p> </td> <td colspan="2" valign="middle" style="width:00.02%;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #auto;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;text-align:center;font-family:Times New Roman;font-size: 8pt"> <font style="display: inline;font-weight:bold;font-size:8pt;">(in thousands)</font></p> </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">Remaining of 2019</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">$</font></p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">1,772&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">2020</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">7,150&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">2021</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">7,305&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">2022</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">7,488&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">2023</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">7,704&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">Thereafter</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">31,518&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">Total undiscounted operating lease payments</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">62,937&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">Less: imputed interest</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">(16,245) </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-weight:bold;font-size:10pt;">Present value of operating lease liabilities </font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">$</font></p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">46,692&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:12.75pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font></p> </td> <td valign="middle" style="width:04.48%;border-top:2pt double #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:12.75pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:2pt double #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:12.75pt;padding:0pt;"> <p style="margin:0.05pt 6pt 0pt 0pt;text-align:right;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-weight:bold;font-size:10pt;">Balance Sheet Classification</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 6pt 0pt 0pt;text-align:right;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">Operating lease liabilities, current</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">$</font></p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">3,724&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-size:10pt;">Operating lease liabilities, non-current</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;overflow: hidden;font-size:0pt;"> &nbsp;</p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;height:15.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">42,968&nbsp; </td> </tr> <tr> <td valign="middle" style="width:74.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:18.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-size:10pt;">&#xFEFF;</font><font style="display: inline;font-weight:bold;font-size:10pt;">Total operating lease liabilities</font></p> </td> <td valign="middle" style="width:04.48%;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;height:18.00pt;padding:0pt;"> <p style="margin:0.05pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">$</font></p> </td> <td valign="bottom" style="width:20.76%;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;height:18.00pt;font-family:Times New Roman;font-size:10pt;text-align:right;" nowrap="nowrap">46,692&nbsp; </td> </tr> </table></div> <p style="margin:0pt;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 1pt"> <font style="display: inline;font-size:1pt;">&#xFEFF;</font> </p> <p style="margin:0pt;text-indent:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;text-indent:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-style:italic;text-decoration:underline;">Cash Flows</font> </p> <p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">An initial right-of-use asset of </font><font style="display: inline;">$35.5</font><font style="display: inline;"> million was recognized on the condensed consolidated balance sheet as of January 1, 2019 with the adoption of the new lease accounting standard. Cash paid for amounts included in the present value of operating lease liabilities </font><font style="display: inline;">was </font><font style="display: inline;">$5.3</font><font style="display: inline;"> million for</font><font style="display: inline;"> the nine months ended September 30, 2019 and included in operating cash flow. </font> </p> <p style="margin:0pt;text-indent:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">&#xFEFF;</font> </p> <p style="margin:0pt;text-indent:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-style:italic;text-decoration:underline;">Operating Lease Costs</font> </p> <p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Operating lease costs were </font><font style="display: inline;">$1.6</font><font style="display: inline;"> million and </font><font style="display: inline;">$4.7</font><font style="display: inline;"> million for</font><font style="display: inline;"> the three and nine months ended September 30, 2019, respectively, primarily related to our operating leases, but also include immaterial amounts for variable leases.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">For our 1305 O&#x2019;Brien lease, we were required to establish a letter of credit for the benefit of the landlord and to submit </font><font style="display: inline;">$4.5</font><font style="display: inline;"> million as a deposit for the letter of credit in October 2015; and, as such, </font><font style="display: inline;">$4.5</font><font style="display: inline;"> million was recorded at such time and continued to be recorded in &#x201C;Long-term restricted cash&#x201D; in the condensed consolidated balance sheet as of December 31, 2018. Subsequently, pursuant to the terms of the 1305 O&#x2019;Brien lease, at May 1, 2019, the </font><font style="display: inline;">$4.5</font><font style="display: inline;"> million in restricted cash was reduced to </font><font style="display: inline;">$4.0</font><font style="display: inline;"> million. The letter of credit balance of </font><font style="display: inline;">$4.0</font><font style="display: inline;"> million at September 30, 2019 will reduce again over time.</font> </p> <p style="margin:13.5pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-style:italic;font-size:10pt;">Contingencies </font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">We may become involved in legal proceedings, claims and assessments from time to time in the ordinary course of business. We accrue liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.</font> </p> <p style="margin:13.5pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-style:italic;font-size:10pt;">Termination of a Material Definitive Agreement</font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On August 2, 2019, we provided notice to GE Healthcare Bio-Sciences Corp. (&#x201C;GE&#x201D;), informing GE that we are terminating the License Agreement (the &#x201C;License Agreement&#x201D;) dated September 11, 2006 between us and GE, effective November 3, 2019. The license Agreement related to several U.S. and foreign patents and pending applications related to labeled nucleoside polyphosphate compounds. We are terminating the License Agreement because we no longer use the patents we licensed from GE under the License Agreement in our business. We will not incur any early termination penalties in connection with the termination of the License Agreement. </font> </p> <p style="margin:13.5pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-style:italic;font-size:10pt;">Legal </font> </p> <p style="margin:13.5pt 0pt 0pt;text-align:justify;text-justify:inter-ideograph;font-weight:bold;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:normal;font-style:italic;">Legal Proceedings Regarding the Merger</font> </p> <p style="margin:4.5pt 0pt 0pt;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">In connection with the proposed acquisition of us by Illumina, </font><font style="display: inline;">five</font><font style="display: inline;"> lawsuits were filed, with each lawsuit naming us and our directors as defendants. </font><font style="display: inline;">Three</font><font style="display: inline;"> putative class action complaints, captioned Wang v. Pacific Biosciences of California, Inc., et al., No. 3:18-cv-7450 (N.D. Cal.), Morrison v. Pacific Biosciences of California, Inc., et al., No. 3:18-cv-7654 (N.D. Cal.), and Speiser v. Pacific Biosciences of California, Inc., et al., No. 3:19-cv-0072 (N.D. Cal.), were filed in the United States District Court for the Northern District of California on December 11, 2018, December 20, 2018, and January 4, 2019, respectively. </font><font style="display: inline;">A</font><font style="display: inline;"> fourth putative class action complaint, captioned Rosenblatt v. Pacific Biosciences of California, Inc., et al., No. 1:18-cv-2005 (D. Del.), was filed in the United States District Court for the District of Delaware on December 18, 2018. </font><font style="display: inline;">A</font><font style="display: inline;">n individual complaint, captioned Washington v. Pacific Biosciences of California, Inc., et al., No. 5:18-cv-7614 (N.D. Cal.), was filed in the United States District Court for the Northern District of California on December 19, 2018. Each of these lawsuits asserted claims under Section 14(a) and Section 20(a) of the Securities Exchange Act of 1934 in connection with the disclosures contained in our preliminary proxy statement on Schedule 14A, filed with the Securities Exchange Commission (the &#x201C;SEC&#x201D;) on December 5, 2018, our definitive proxy statement on Schedule 14A, filed with the SEC on December 18, 2018, or both. The complaints sought a variety of equitable and injunctive relief including, among other things, enjoining the consummation of the acquisition and awarding the plaintiffs costs and attorneys&#x2019; fees.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Although our management believed that the claims were without merit</font><font style="display: inline;">, we agreed to make supplemental disclosures in exchange for plaintiffs&#x2019; agreement that the supplemental disclosures would moot their claims. We made these supplemental disclosures in a proxy statement amendment on Schedule 14A, filed with the SEC on January 18, 2019. </font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On January 29, 2019, all parties to each of the lawsuits reached an agreement pursuant to which we would pay a total of </font><font style="display: inline;">$300,000</font><font style="display: inline;"> in attorneys&#x2019; fees to the plaintiffs. On January 29, 2019, each plaintiff filed a voluntary dismissal of his or her lawsuit. As of September 30, 2019, we paid a total amount of </font><font style="display: inline;">$300,000</font><font style="display: inline;"> for the </font><font style="display: inline;">five</font><font style="display: inline;"> lawsuits filed in 2018 and the first quarter of 2019. </font> </p> <p style="margin:13.5pt 0pt 0pt;text-align:justify;text-justify:inter-ideograph;font-weight:bold;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:normal;font-style:italic;">USITC Proceedings</font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On November 2, 2016, we filed a complaint against Oxford Nanopore Technologies Ltd. (&#x201C;ONT Ltd.&#x201D;), Oxford Nanopore Technologies, Inc. (&#x201C;ONT Inc.&#x201D;) and Metrichor, Ltd. (&#x201C;Metrichor&#x201D; and, together with ONT Ltd. and ONT Inc., &#x201C;ONT&#x201D;) with the U.S. International Trade Commission (&#x201C;USITC&#x201D;) for patent infringement. On December 5, 2016, the USITC provided notice that an investigation had been instituted based on the complaint. We sought exclusionary relief with respect to several ONT products, including ONT&#x2019;s MinION and PromethION devices. The complaint was based on our U.S. Patent No. 9,404,146, entitled &#x201C;Compositions and methods for nucleic acid sequencing&#x201D; which covers novel methods for sequencing single nucleic acid molecules using linked double-stranded nucleic acid templates, providing improved sequencing accuracy. On March 1, 2017, we filed an amended complaint to add a second patent in the same patent family, U.S. Patent No. 9,542,527, which was granted on January 10, 2017, to the investigation. We sought, among other things, an exclusion order permanently barring entry of infringing ONT products into the United States, and a cease and desist order preventing ONT from advertising and selling infringing products in the United States. On May 23, 2017, the Administrative Law Judge (&#x201C;ALJ&#x201D;) assigned to the matter issued an order construing certain claim terms of the asserted patents. On June 8, 2017, ONT filed a summary determination motion to terminate the proceedings based on the ALJ&#x2019;s claim construction decision, and we did not oppose the motion. The ALJ granted the motion on July 19, 2017, and, on July 31, 2017, we filed a petition to review with the USITC to correct what we believe was an incorrect construction of the claims. On September 5, 2017, the USITC issued a notice granting our petition to review the ALJ&#x2019;s claim construction decision. On February 7, 2018, the USITC issued a notice indicating that it had determined to adopt the ALJ&#x2019;s claim construction and terminating the investigation. On February 13, 2018, we filed a petition to appeal the USITC&#x2019;s ruling to the U.S. Court of Appeals for the Federal Circuit. (&#x201C;Federal Circuit&#x201D;). An oral hearing for this appeal was held on February 8, 2019. On February 12, 2019, the Federal Circuit filed a judgement affirming the USITC claim construction under Federal Circuit Rule 36 without a written opinion.</font> </p> <p style="margin:13.5pt 0pt 0pt;text-align:justify;text-justify:inter-ideograph;font-weight:bold;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:normal;font-style:italic;">U.S. District Court Proceedings</font> </p> <p style="margin:4.5pt 0pt 0pt;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On March 15, 2017, we filed a complaint in the U.S. District Court for the District of Delaware against ONT Inc. for patent infringement (C.A. No. 17-cv-275 (&#x201C;275 Action&#x201D;)). The complaint is based on our U.S. Patent No. 9,546,400 (the &#x201C;&#x2019;400 Patent&#x201D;), entitled &#x201C;Nanopore sequencing using n-mers&#x201D; which covers novel methods for nanopore sequencing of nucleic acid molecules using the signals from multiple monomeric units. This patent was granted on January 17, 2017. We are seeking remedies including injunctive relief, damages and costs. On May 8, 2017, the defendants filed a motion to dismiss the complaint, alleging that the asserted patent claims recite patent ineligible subject matter. On November 9, 2017, the judge denied ONT Inc.&#x2019;s motion to dismiss. On June 1, 2018, we filed a motion for leave to amend the complaint to add ONT Ltd. as a defendant.&nbsp;&nbsp;On August 20, 2018, the judge granted our motion, and on August 23, 2018, we filed an amended complaint, adding ONT Ltd. as a defendant in the 275 Action. On September 24, 2018, ONT Ltd. filed a motion to dismiss the amended complaint, alleging failure to state a claim. On April 24, 2019, the judge denied ONT Ltd.&#x2019;s motion to dismiss.</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">On July 11, 2019 we filed a motion to file an amended complaint in the 275 Action to add allegations of willful infringement by ONT Ltd. On August 15, 2019, the judge granted the motion to amend the complaint in the 275 Action.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On September 12, 2018, ONT Inc. filed its answer, defenses and counterclaims in the 275 Action, seeking declaratory judgements of non-infringement and invalidity of the &#x2019;400 Patent and unenforceability of the &#x2019;400 Patent based on alleged inequitable conduct before the U.S. Patent and Trademark Office (&#x201C;USPTO&#x201D;), as well as antitrust, false advertising, and unfair competition counterclaims. On September 25, 2018, it was stipulated that the motion to dismiss ONT Inc.&#x2019;s counterclaims that we submitted in the 1353 Action would also serve as our motion to dismiss ONT Inc.&#x2019;s counterclaims in the 275 Action. On February 19, 2019, the judge granted our motion to dismiss ONT Inc.&#x2019;s antitrust, false advertising, and unfair competition counterclaims in each action.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Related to the 275 Action, on March 15, 2018, ONT Inc. filed a petition to institute an inter partes review with the Patent Trial and Appeal Board (&#x201C;PTAB&#x201D;) of the USPTO, alleging invalidity of the &#x2019;400 Patent.&nbsp;&nbsp;On July 5, 2018, we filed a preliminary response outlining for the PTAB why the petition should be denied and no review should be instituted. On September 25, 2018, the PTAB denied ONT Inc.&#x2019;s petition for institution of the inter partes review for all claims of the &#x2019;400 Patent.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On September 25, 2017, we filed a second complaint in the U.S. District Court for the District of Delaware against ONT Inc. for patent infringement (C.A. No. 17-cv-1353 (&#x201C;1353 Action&#x201D;)). The complaint is based on our U.S. Patent No. 9,678,056 (the &#x201C;&#x2019;056 Patent&#x201D;) entitled &#x201C;Control of Enzyme Translation in Nanopore Sequencing&#x201D;, granted June 13, 2017, and U.S. Patent No. 9,738,929 (the &#x201C;&#x2019;929 Patent&#x201D;) entitled &#x201C;Nucleic Acid Sequence Analysis&#x201D;, granted August 22, 2017. We are seeking remedies including injunctive relief, damages and costs. On December 14, 2017, the defendants filed a motion to dismiss the complaint, alleging that the asserted patent claims in the &#x2019;929 Patent recite patent ineligible subject matter. On March 22, 2018, the judge denied ONT Inc.&#x2019;s motion to dismiss. On March 28, 2018, we added a claim for infringement of our U.S. Patent No. 9,772,323 (the &#x201C;&#x2019;323 Patent&#x201D;), entitled &#x201C;Nanopore sequencing using n-mers.&#x201D; On June 1, 2018, we filed a motion for leave to amend the complaint to add ONT Ltd. as a defendant. On August 20, 2018, the judge granted our motion, and on August 23, 2018 we filed an amended complaint, adding ONT Ltd. as a defendant in the 1353 Action.&nbsp;&nbsp;On September 24, 2018, ONT filed a motion to dismiss the amended complaint, alleging failure to state a claim. On April 24, 2019, the judge denied ONT Ltd.&#x2019;s motion to dismiss. On July 11, 2019 we filed a motion to file an amended complaint in the 1353 Action to add allegations of willful infringement by ONT Ltd. On August 15, 2019, the judge granted the motion to amend the complaint in the 1353 Action.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On April 25, 2018, ONT Inc. filed its answer, defenses and counterclaims in the 1353 Action, seeking declaratory judgements of non-infringement and invalidity of the &#x2019;056 and &#x2019;323 Patents and unenforceability of the &#x2019;056 and &#x2019;323 Patents based on alleged inequitable conduct before the USPTO, as well as antitrust, false advertising, and unfair competition counterclaims. On June 15, 2018, we filed a motion to dismiss ONT Inc.&#x2019;s counterclaims in the 1353 Action and, on June 18, 2018, we filed a motion to bifurcate and stay discovery on ONT Inc.&#x2019;s antitrust counterclaims in the 1353 Action. On February 19, 2019, the judge granted our motion to dismiss ONT Inc.&#x2019;s antitrust, false advertising, and unfair competition counterclaims.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Related to the 1353 Action, on September 24, 2018, ONT Inc. filed a first petition to institute an inter partes review with the PTAB of the USPTO, alleging invalidity of the &#x2019;929 Patent.&nbsp;&nbsp;On September 25, 2018, ONT Inc. filed a second petition to institute an inter partes review of the &#x2019;929 Patent based on the same art and arguments as the first petition.&nbsp;&nbsp;ONT Inc. subsequently filed a motion to withdraw the first petition, which motion was granted. On January 11, 2019, we filed a preliminary response to the second petition outlining for the PTAB why the petition should be denied, and no review should be instituted. On March 26, 2019, the PTAB denied ONT Inc.&#x2019;s petition for institution of the inter partes review for all claims of the &#x2019;929 Patent.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Also related to the 1353 Action, on September 25, 2018, ONT Inc. filed a petition to institute an inter partes review with the PTAB of the USPTO, alleging invalidity of the &#x2019;056 Patent. On February 13, 2019, we filed a preliminary response to the second petition outlining for the PTAB why the petition should be denied and no review should be instituted. On March 25, 2019, ONT Inc. moved to withdraw its petition for institution of the inter partes review of the &#x2019;056 Patent, which motion was granted by the PTAB on March 26, 2019, thus terminating the proceedings.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">A claim construction (or &#x201C;Markman&#x201D;) hearing for the U.S. District Court matters was held on December 17, 2018. On March 6, 2019, a claim construction order construing various claim terms in the patents in suit was issued. A trial for the U.S. District Court matters is scheduled to occur in March 2020.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Unrelated to the preceding matters, on September 26, 2019, Personal Genomics of Taiwan, Inc. (&#x201C;PGI&#x201D;) filed a complaint in the U.S. District Court for the District of Delaware against us for patent infringement (C.A. No. 19-cv-1810). The complaint is based on PGI&#x2019;s U.S. Patent No. 7,767,441.&nbsp;&nbsp;We plan to vigorously defend in this matter. </font> </p> <p style="margin:13.5pt 0pt 0pt;text-align:justify;text-justify:inter-ideograph;font-weight:bold;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:normal;font-style:italic;">UK and German Court Proceedings</font> </p> <p style="margin:4.5pt 0pt 0pt;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On February 2, 2017, we filed a claim in the High Court of England and Wales against ONT Ltd. and Metrichor for infringement of Patent EP(UK) 3 045 542 (the &#x201C;&#x2019;542 Patent&#x201D;), which is in the same patent family as the patents asserted in the USITC action referred to above.&nbsp;&nbsp;We sought remedies including injunctive relief, damages, and costs. On March 27, 2017, the defendants in the case filed their defense and counterclaim, denying infringement and seeking a declaration that the asserted patent is invalid. We filed our reply and defense to counterclaim on April 12, 2017.&nbsp;&nbsp;A case management conference was held on June 13, 2017.&nbsp;&nbsp;On August 31, 2017 we added a claim for infringement of a newly granted divisional, EP(UK) 3 170 904 (the &#x201C;&#x2019;904 Patent&#x201D;).&nbsp;&nbsp;&nbsp;On December 22, 2017, ONT Ltd. added to the action a request for declaration of non-infringement of its 1D2 product. On January 12, 2018 we served reply to ONT Ltd.&#x2019;s request for a declaration of non-infringement, asserting infringement of both patents by ONT&#x2019;s 1D2 product. A trial for these matters was scheduled to occur in May 2018.&nbsp; </font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On April 21, 2017, ONT Ltd. and Harvard University filed a claim against us in the High Court of England and Wales for infringement of Patent EP(UK) 1 192 453 (the &#x201C;&#x2019;453 Patent&#x201D;), a patent owned by Harvard University and entitled &#x201C;Molecular and atomic scale evaluation of biopolymers,&#x201D; and for which ONT Ltd. alleges it holds an exclusive license.&nbsp;&nbsp;ONT Ltd. and Harvard University sought remedies including injunctive relief, damages, and costs. On April 25, 2017, ONT Ltd. announced that it also had filed a claim against us in the District Court of Mannheim, Germany, for infringement of the German version of the patent.&nbsp;&nbsp;On November 2, 2017, we filed our statement of defense in the German infringement matter and we also filed a separate nullity action in Germany to establish that the &#x2019;453 Patent is invalid.&nbsp;&nbsp;On December 6, 2017, we filed a cross-complaint in the German infringement matter alleging ONT Ltd.&#x2019;s infringement in Germany of our &#x2019;542 Patent.&nbsp;&nbsp;The trial date for the German infringement matter and cross-complaint was set for July 27, 2018.&nbsp;&nbsp;A trial for the UK matter was scheduled to occur in March 2019.&nbsp; </font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">On May 8, 2018, the parties entered a settlement of all UK and German court proceedings pending as of such date. Under the terms of the settlement, ONT agreed not to make, dispose of, use or import any &#x201C;2D&#x201D; nanopore sequencing products, or to induce or assist others to carry out a &#x201C;2D&#x201D; sequencing process, in the UK or Germany, through the end of 2023. During this time, we agreed not to assert the &#x2019;542 Patent and &#x2019;904 Patent against either ONT or its customers in the UK or Germany. Accordingly, the High Court of England and Wales entered an order staying our UK action against ONT through the end of 2023. As part of the settlement, ONT and Harvard University dismissed their UK and German actions under the &#x2019;453 Patent and agreed not to assert the &#x2019;453 Patent against us or our customers through the end of 2023. We correspondingly agreed to dismiss our separate German nullity action seeking to invalidate the &#x2019;453 Patent, which expires on June 22, 2020.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Related to these proceedings, on August 15, 2017, ONT Ltd. filed a notice of opposition to our &#x2019;542 Patent with the European Patent Office, and on August 16, 2017, an anonymous party filed a second notice of opposition to the same patent, each alleging invalidity of the patent.&nbsp;&nbsp;On April 5, 2018, we filed our response to the combined opposition. On January 22, 2019, an oral hearing in the matter occurred and the European Patent Office rendered a decision in favor of the opponents. We believe the European Patent Office erred in its decision and we intend to appeal the decision. The &#x2019;542 Patent will remain in effect while the appeal is pending. Our settlement agreement with ONT Ltd. and Harvard University will also remain in effect regardless of the outcome of the appeal.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Also related to these proceedings, on May 16, 2018, ONT Ltd. filed a notice of opposition to our &#x2019;904 Patent with the European Patent Office alleging invalidity of the &#x2019;904 Patent. On October 11, 2018, we filed our response to the opposition. On July 16, 2019, an oral hearing in the matter occurred and the European Patent Office rendered a decision in favor of the opponents. We believe the European Patent Office erred in its decision and we intend to appeal the decision. The &#x2019;904 Patent will remain in effect while the appeal is pending. Our settlement agreement with ONT Ltd. and Harvard University will also remain in effect regardless of the outcome of the appeal.</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Litigation is inherently unpredictable, and it is too early in the proceedings to predict the outcome of these lawsuits or any impact they may have on us. As such, the estimated financial effect associated with these complaints cannot be made as of the date of filing of this Annual Report on Form 10-K. Litigation is a significant ongoing expense with an uncertain outcome, and has been in the past and may in the future be a material expense for us. Management believes this investment is important to protect our intellectual property position, even recognizing the uncertainty of the outcome.</font> </p> <p style="margin:13.5pt 0pt 0pt;text-align:justify;text-justify:inter-ideograph;font-weight:bold;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:normal;font-style:italic;">Other Proceedings</font> </p> <p style="margin:4.5pt 0pt 0pt;border-bottom:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">From time to time, we may also be involved in a variety of other claims, lawsuits, investigations and proceedings relating to securities laws, product liability, patent infringement, contract disputes, employment and other matters that arise in the normal course of our business. In addition, third parties may, from time to time, assert claims against us in the form of letters and other communications. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We currently do not believe that the ultimate outcome of any of the matters described above is probable or reasonably estimable, or that these matters will have a material adverse effect on our business; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of litigation and settlement costs, diversion of management resources and other factors.</font> </p> <p style="margin:10pt 0pt 0pt;text-indent:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-style:italic;">Indemnification</font> </p> <p style="margin:4.5pt 0pt 0pt;border-top:1pt none #D9D9D9 ;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;">Pursuant to Delaware law and agreements entered into with each of our directors and officers, we may have obligations, under certain circumstances, to hold harmless and indemnify each of our directors and officers against losses suffered or incurred by the indemnified party in connection with their service to us, and judgements, fines, settlements and expenses related to claims arising against such directors and officers to the fullest extent permitted under Delaware law, our bylaws and certificate of incorporation. We also enter and have entered into indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law. In addition, we may have obligations to hold harmless and indemnify third parties involved with our fundraising efforts and their respective affiliates, directors, officers, employees, agents or other representatives against any and all losses, claims, damages and liabilities related to claims arising against such parties pursuant to the terms of agreements entered into between such third parties and us in connection with such fundraising efforts. To the extent that any such indemnification obligations apply to the lawsuits described above, any associated expenses incurred are included within the related accrued litigation expense amounts. </font><font style="display: inline;">No</font><font style="display: inline;"> additional liability associated with such indemnification obligations has been recorded at September 30, 2019.</font> </p> <p><font size="1"> </font></p> </div> </div>
us-gaap Loss Contingency New Claims Filed Number
LossContingencyNewClaimsFiledNumber
5
CY2019Q1 us-gaap Loss Contingency New Claims Filed Number
LossContingencyNewClaimsFiledNumber
5
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
101903000
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
8417000
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-32902000
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
65455000
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-47445000
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-60132000
us-gaap Net Income Loss
NetIncomeLoss
-71763000
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
-25044000
us-gaap Net Income Loss
NetIncomeLoss
-84043000
CY2019Q3 us-gaap Net Income Loss
NetIncomeLoss
-29123000
us-gaap New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Quantification
NewAccountingPronouncementOrChangeInAccountingPrincipleEffectOfAdoptionQuantification
189000
CY2019Q3 us-gaap Notes Payable Current
NotesPayableCurrent
15546000
us-gaap Operating Expenses
OperatingExpenses
89714000
CY2018Q3 us-gaap Operating Expenses
OperatingExpenses
27862000
us-gaap Operating Income Loss
OperatingIncomeLoss
-70364000
us-gaap Operating Lease Cost
OperatingLeaseCost
4700000
CY2019Q3 us-gaap Operating Lease Cost
OperatingLeaseCost
1600000
CY2019Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
49200000
CY2019Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
46692000
CY2019Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
3400000
CY2019Q3 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
3724000
CY2019Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
45800000
CY2019Q3 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
42968000
us-gaap Operating Lease Payments
OperatingLeasePayments
2537000
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
35500000
CY2019Q3 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
33510000
CY2018Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
43000
CY2019Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
41000
us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeAvailableforsaleSecuritiesAdjustmentNetOfTaxPortionAttributableToParent
8000
CY2018Q3 us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeAvailableforsaleSecuritiesAdjustmentNetOfTaxPortionAttributableToParent
-8000
us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeAvailableforsaleSecuritiesAdjustmentNetOfTaxPortionAttributableToParent
47000
CY2019Q3 us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeAvailableforsaleSecuritiesAdjustmentNetOfTaxPortionAttributableToParent
-6000
CY2018Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
788000
CY2019Q3 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
1110000
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
396000
us-gaap Payments For Rent
PaymentsForRent
5300000
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
104228000
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
42710000
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1796000
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2695000
CY2018Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2019Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
50000000
CY2018Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0
CY2019Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0
CY2018Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0
CY2019Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0
CY2018Q4 us-gaap Preferred Stock Value
PreferredStockValue
CY2019Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
21915000
CY2019Q3 us-gaap Preferred Stock Value
PreferredStockValue
CY2018Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
2832000
CY2019Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
2704000
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
58915000
CY2019Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
20066000
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
4181000
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
8417000
us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
70680000
us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
109360000
us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
2442000
us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
1500000
CY2018Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
34073000
CY2019Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
31618000
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
46331000
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
62961000
CY2018Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
4500000
CY2019Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
4000000
CY2015Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
4500000
CY2018Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
4500000
CY2019Q2 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
4000000
CY2019Q3 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
4000000
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-982106000
CY2019Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-1066149000
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
59100000
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
18160000
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
62961000
CY2019Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
21915000
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
59100000
CY2018Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
18160000
CY2018Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
135130000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
152351000
CY2019Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
152983000
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
86103000
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
85474000
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
131880000
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
114061000
CY2019Q2 us-gaap Stockholders Equity
StockholdersEquity
75754000
CY2019Q3 us-gaap Stockholders Equity
StockholdersEquity
51014000
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
4181000
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
43383000
CY2018Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
13506000
us-gaap Share Based Compensation
ShareBasedCompensation
15631000
us-gaap Share Based Compensation
ShareBasedCompensation
12532000
CY2018Q4 us-gaap Short Term Investments
ShortTermInvestments
83510000
CY2019Q3 us-gaap Short Term Investments
ShortTermInvestments
16120000
CY2018Q3 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
1664000
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
8417000
CY2019Q3 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
327000
us-gaap Use Of Estimates
UseOfEstimates
<div> <div style="margin-left:0pt;margin-right:0pt;"> <p style="margin:13.5pt 0pt 0pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-weight:bold;font-style:italic;font-size:10pt;">Use of Estimates </font> </p> <p style="margin:4.5pt 0pt 0pt;text-indent:24.5pt;font-family:Times New Roman;font-size: 10pt"> <font style="display: inline;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, the determination of stand-alone selling prices for revenue recognition, the valuation of a financing derivative and long-term notes, the valuation and recognition of share-based compensation, the expected renewal period for service contracts, the useful lives assigned to long-lived assets, the computation of provisions for income taxes and the determination of the internal borrowing rate used in calculating the operating lease right-of-use assets and operating lease liabilities. Actual results could differ materially from these estimates. </font> </p> <p><font size="1"> </font></p> </div> </div>
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
130302000

Files In Submission

Name View Source Status
0001299130-19-000053-index-headers.html Edgar Link pending
0001299130-19-000053-index.html Edgar Link pending
0001299130-19-000053.txt Edgar Link pending
0001299130-19-000053-xbrl.zip Edgar Link pending
FilingSummary.xml Edgar Link unprocessable
Financial_Report.xlsx Edgar Link pending
pacb-20190930.xml Edgar Link completed
pacb-20190930.xsd Edgar Link pending
pacb-20190930x10q.htm Edgar Link pending
pacb-20190930xex31_1.htm Edgar Link pending
pacb-20190930xex31_2.htm Edgar Link pending
pacb-20190930xex32_1.htm Edgar Link pending
pacb-20190930xex32_2.htm Edgar Link pending
pacb-20190930_cal.xml Edgar Link unprocessable
pacb-20190930_def.xml Edgar Link unprocessable
pacb-20190930_lab.xml Edgar Link unprocessable
pacb-20190930_pre.xml Edgar Link unprocessable
R1.htm Edgar Link pending
R10.htm Edgar Link pending
R11.htm Edgar Link pending
R12.htm Edgar Link pending
R13.htm Edgar Link pending
R14.htm Edgar Link pending
R15.htm Edgar Link pending
R16.htm Edgar Link pending
R17.htm Edgar Link pending
R18.htm Edgar Link pending
R19.htm Edgar Link pending
R2.htm Edgar Link pending
R20.htm Edgar Link pending
R21.htm Edgar Link pending
R22.htm Edgar Link pending
R23.htm Edgar Link pending
R24.htm Edgar Link pending
R25.htm Edgar Link pending
R26.htm Edgar Link pending
R27.htm Edgar Link pending
R28.htm Edgar Link pending
R29.htm Edgar Link pending
R3.htm Edgar Link pending
R30.htm Edgar Link pending
R31.htm Edgar Link pending
R32.htm Edgar Link pending
R33.htm Edgar Link pending
R34.htm Edgar Link pending
R35.htm Edgar Link pending
R36.htm Edgar Link pending
R37.htm Edgar Link pending
R38.htm Edgar Link pending
R39.htm Edgar Link pending
R4.htm Edgar Link pending
R40.htm Edgar Link pending
R41.htm Edgar Link pending
R42.htm Edgar Link pending
R43.htm Edgar Link pending
R44.htm Edgar Link pending
R5.htm Edgar Link pending
R6.htm Edgar Link pending
R7.htm Edgar Link pending
R8.htm Edgar Link pending
R9.htm Edgar Link pending
report.css Edgar Link pending
Show.js Edgar Link pending