What changed in this filing

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Item 1. Financial Statements

2020-08-06 compared with 2020-05-08 · 119 added, 93 removed, 427 unchanged (33% of the section changed)

32 unchanged sentences

Authorized 1,000,000 shares;

issued and outstanding 153,953 shares and 153,119 shares at March 31, 2020 and December 31, 2019, respectively

issued and outstanding 154,318 shares and 153,119 shares at June 30, 2020 and December 31, 2019, respectively

Additional paid-in capital

7 unchanged sentences

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

Three Months Ended March 31,

Condensed Consolidated Statements of Operations and Comprehensive Loss

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts)

14 unchanged sentences

Other income, net

Net income (loss)

Other comprehensive income (loss):

Unrealized gain on investments

Comprehensive income (loss)

Net income (loss) per share:

Weighted average shares outstanding used in calculating net income (loss) per share

Unrealized income on investments

Comprehensive loss

Net loss per share:

Basic and diluted net loss per share

Shares used in computing basic and diluted net loss per share

See accompanying notes to the condensed consolidated financial statements.

5 unchanged sentences

Income (Loss)

For the three months ended March 31, 2020

For the three months ended June 30, 2020

Balance at March 31, 2020

( 1,065,010 )

Other comprehensive income

Issuance of common stock in conjunction with equity plans

Stock-based compensation expense

Balance at June 30, 2020

( 1,088,096 )

For the three months ended June 30, 2019

Balance at March 31, 2019

( 1,012,430 )

Other comprehensive income

Issuance of common stock in conjunction with equity plans

Stock-based compensation expense

Balance at June 30, 2019

( 1,037,026 )

For the six months ended June 30, 2020

Balance at December 31, 2019

4 unchanged sentences

Stock-based compensation expense

Balance at March 31, 2020

Balance at June 30, 2020

( 1,088,096 )

For the three months ended March 31, 2019

For the six months ended June 30, 2019

Balance at December 31, 2018

2 unchanged sentences

Stock-based compensation expense

Balance at March 31, 2019

Balance at June 30, 2019

( 1,037,026 )

2 unchanged sentences

Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands)

Cash flows from operating activities

Net income (loss)

Adjustments to reconcile net loss to net cash used in operating activities

18 unchanged sentences

Purchase of investments

Sales of investments

Maturities of investments

1 unchanged sentence

Cash flows from financing activities

Proceeds from Continuation Advances

Continuation Advances

Notes payable principal payoff

7 unchanged sentences

Cash and cash equivalents and restricted cash at end of period

Supplemental disclosure of cash flow information

Inventory transferred to property and equipment

See accompanying notes to the condensed consolidated financial statements.

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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 31, 2019.

The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the entire year or any future periods.

The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the entire year or any future periods.

The condensed consolidated financial statements include the accounts of Pacific Biosciences and our wholly-owned subsidiaries.

2 unchanged sentences

The extent of the impact of the COVID-19 pandemic on our business is highly uncertain as responses to the pandemic can change quickly and information is rapidly evolving.

We considered the impact of COVID-19 on the assumptions and estimates used to determine the results reported and asset valuations as of March 31, 2020.

We considered the impact of COVID-19 on the assumptions and estimates used to determine the results reported and asset valuations as of June 30, 2020.

Use of Estimates

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of March 31, 2020 and December 31, 2019 respectively:

March 31, 2020

The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis as of June 30, 2020 and December 31, 2019 respectively:

June 30, 2020

December 31, 2019

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Balance Sheet Components”) was determined using Level 3 inputs, or significant unobservable inputs.

Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the consolidated statements of operations and comprehensive loss.

Changes to the estimated fair value of the Financing Derivative are recorded in “Other income, net” in the consolidated statements of operations and comprehensive loss.

The estimated fair value of the Financing Derivative was determined by comparing the difference between the fair value of the Notes from the debt facility that we entered into during the first quarter of 2013 (the “Notes”) with and without the Financing Derivative by calculating the respective present values from future cash flows using a 6.5 % discount rate at December 31, 2019.

9 unchanged sentences

The estimated fair value of the liability related to the Continuation Advances was determined using Level 3 inputs, or significant unobservable inputs.

Management estimated that there would be no future cash outflows associated with this financial instrument because the probabilities of either of the following events occurring and requiring repayment to Illumina were evaluated as being remote as of March 31, 2020:

 we enter into a Change of Control Transaction within two years following March 31, 2020;

 we raise $ 100 million or more in a single equity or debt financing (that may have multiple closings) within two years following March 31, 2020.

As a result, the estimated fair value of the liability associated with the contingent repayment of the Continuation Advances received in the first quarter of 2020 was assessed to be zero as of March 31, 2020 with a resulting non-operating gain of $ 34.0 million recorded as “Gain from Continuation Advances from Illumina” for the quarter ended March 31, 2020.

As a result, the estimated fair value of the liability associated with the contingent repayment of the Continuation Advances received in the first quarter of 2020 was assessed to be zero as of both March 31, 2020 and June 30, 2020, with a resulting non-operating gain of $ 34.0 million recorded as “Gain from Continuation Advances from Illumina” for the quarter ended March 31, 2020.

We recorded a similar gain of $ 18.0 million in 2019 for the Continuation Advances received during the fourth quarter of 2019.

For the quarter ended March 31, 2020, there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and our valuation techniques did not change compared to the prior year.

Net Income (Loss) per Share

Basic net income (loss) per share and diluted net income (loss) per share are presented for both periods presented.

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period.

Diluted net income (loss) per share is computed using the weighted average number of shares of common stock outstanding and potential shares assuming the dilutive effect of outstanding stock options, restricted stock units and common stock issuable pursuant to our employee stock purchase plan, or ESPP, using the treasury stock method.

The following table presents the calculation of weighted average shares of common stock used in the computations of basic and diluted net income (loss) per share amounts presented in the accompanying condensed consolidated statements of operations and comprehensive income (loss) (in thousands, except per share amounts):

Three Month Ended March 31,

Net income (loss)

Weighted average shares used in computing basic net income (loss) per share

Basic net income (loss) per share

Weighted average shares used in computing basic net income (loss) per share

weighted average stock options

weighted average restricted stock units

Weighted average shares used in computing diluted net income (loss) per share

Diluted net income (loss) per share

The following outstanding common stock options, restricted stock units and ESPP shares to purchase common stock were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have had an anti-dilutive effect (in thousands):

Three Months Ended March 31,

For the quarter ended June 30, 2020, there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and our valuation techniques did not change compared to the prior year.

Net Loss per Share

The following outstanding common stock options, restricted stock units (“RSUs”), with time-based vesting and RSUs with performance-based vesting, were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect.

Stockholders’ Equity for detailed information on RSUs with time-based vesting and RSUs with performance-based vesting.

Six Months Ended June 30,

(in thousands)

3 unchanged sentences

Concentration and Other Risks

For the three months ended March 31, 2020, TOMY Digital Biology Co accounted for approximately 11 % of our total revenue with no other customer exceeding 10% of our total revenue during the period.

For the three months ended March 31, 2019, Gene Company Limited accounted for approximately 17 % of our total revenue with no other customer exceeding 10% of our total revenue during the period.

TOMY Digital Biology Co.

is our distributor in Japan and Gene Company Limited is our primary distributor in China.

For the three and six months ended June 30, 2020, Gene Company Limited accounted for approximately 15 % and 11 %, respectively, of our total revenue during the period with no other customer exceeding 10% during those periods.

For the three and six months ended June 30, 2019, Gene Company Limited accounted for approximately 23 % and 20 % of our total revenue, respectively, with no other customer exceeding 10% during those periods.

Gene Company Limited is our primary distributor in China.

Recent Accounting Pronouncements

9 unchanged sentences

In June 2016, FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments loss (“Topic 326”), which replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost.

Measurement of Credit Losses on Financial Instruments (“Topic 326”), which replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost.

We adopted Topic 326 on January 1, 2020, using a modified retrospective transition method, which requires a cumulative-effect adjustment to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated.

9 unchanged sentences

( 1,066,272 )

The adoption of Topic 326 did not have a material impact on our financial statements and our bad debt expense was immaterial as of March 31, 2020.

The adoption of Topic 326 did not have a material impact on our financial statements and our bad debt expense was immaterial as of June 30 2020.

Please see the description of our “Credit Losses” accounting policy in the “Significant Accounting Policies” section below.

7 unchanged sentences

Our investment portfolio at any point in time contains investments in cash deposits, money market funds, commercial paper, corporate debt securities and US government and agency securities.

We segment our portfolio based on the underlying risk profiles of the securities and have a zero loss expectation for U.S.

government and agency securities.

We regularly review the securities in an unrealized loss position and evaluate the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions and concluded that an allowance for credit losses was not required as of March 31, 2020.

We regularly review the securities in an unrealized loss position and evaluate the current expected credit loss by considering factors such as significance of loss, historical experience, market data, issuer-specific factors, and current economic conditions and concluded that an allowance for credit losses was not required as of June 30 2020.

Although we have historically not experienced significant credit losses, our exposure to credit losses may increase if our customers are adversely affected by changes in economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 pandemic, or other customer-specific factors.

CASH, CASH EQUIVALENTS AND INVESTMENTS

The following tables summarize our cash, cash equivalents and investments as of March 31, 2020 and December 31, 2019 (in thousands):

As of March 31, 2020

The following tables summarize our cash, cash equivalents and investments as of June 30, 2020 and December 31, 2019 (in thousands):

As of June 30, 2020

Cash and cash equivalents:

18 unchanged sentences

Long-term restricted cash:

The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of March 31, 2020 (in thousands):

The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of June 30, 2020 (in thousands):

Due in one year or less

Due after one year through five years

Due after one year through 5 years

Total investments

1 unchanged sentence

BALANCE SHEET COMPONENTS

As of March 31, 2020 and December 31, 2019, our inventory consisted of the following components:

As of June 30, 2020 and December 31, 2019, our inventory consisted of the following components:

(in thousands)

5 unchanged sentences

Subsequently, pursuant to the terms of the O’Brien Lease, on May 1, 2019, the amount of the letter of credit was reduced from $ 4.5 million to $ 4.0 million.

As such, $ 4.0 million was recorded in “Long-term restricted cash” in the condensed consolidated balance sheet as of March 31, 2020 and December 31, 2019.

Pursuant to the terms of the O’Brien Lease, the letter of credit balance of $ 4.0 million at March 31, 2020 will be reduced again in May 2020 by $ 500,000 .

As such, $ 4.0 million was recorded in “Long-term restricted cash” in the condensed consolidated balance sheet as of December 31, 2019.

Pursuant to the terms of the O’Brien Lease, the letter of credit balance of $ 4.0 million was reduced again in May 2020 by $ 500,000 .

As such, $ 3.5 million was recorded in “Long-term restricted cash” in the condensed consolidated balance sheet as of June 30, 2020.

Deferred gain from Reverse Termination Fee

3 unchanged sentences

As indicated in ASC 450, Contingencies , a gain contingency usually is not recognized in the financial statements until the period in which all contingencies are resolved and the gain is realizable.

As such we have deferred the gain from the Reverse Termination Fee from Illumina until the date when the associated contingency is resolved and accordingly, we recorded the $ 98.0 million as “Deferred Gain from Reverse Termination Fee” in the condensed consolidated balance sheets as of March 31, 2020.

We recorded the $ 6.0 million of associated fees owed to our financial advisor in the “Sales, general and administrative” expense line in the condensed consolidated statements of operations and comprehensive income for the quarter ended March 31, 2020.

Notes payable, current

As of December 31, 2019, a balance of $ 16.0 million aggregate principal amount of debt remained outstanding under the Facility Agreement and was presented as “Notes payable, current” on the condensed consolidated balance sheet as of December 31, 2019.

As of December 31, 2019, a balance of $ 16.0 million aggregate principal amount of debt remained outstanding under the debt agreement with Deerfield entered into in February 2013 (the “Facility Agreement”) and was presented as “Notes payable, current” on the condensed consolidated balance sheet as of December 31, 2019.

In February 2020, upon the maturity of the Facility Agreement, we repaid the remaining outstanding principal of $ 16.0 million and interest.

6 unchanged sentences

Deferred revenue

As of March 31, 2020, we had a total of $ 8.6 million of deferred revenue from our service contracts, $ 7.1 million of which was recorded as “Deferred revenue, current” to be recognized over the next year and the remaining $ 1.5 million was recorded as “Deferred revenue, non-current” to be recognized in the next 3 years.

Revenue recorded in the three months ended March 31, 2020 includes $ 2.9 million of previously deferred revenue that was included in “Deferred revenue, current” as of December 31, 2019.

Contract assets as of March 31, 2020 and December 31, 2019 were not material.

As of March 31, 2020, we had a total of $ 0.5 million of deferred commissions included in “Prepaid expenses and other current assets” which is recognized as the related revenue is recognized.

As of June 30, 2020, we had a total of $ 8.4 million of deferred revenue from our service contracts, $ 6.9 million of which was recorded as “Deferred revenue, current” to be recognized over the next year and the remaining $ 1.5 million was recorded as “Deferred revenue, non-current” to be recognized in the next 3 years.

Revenue recorded in the three months ended June 30, 2020 includes $ 2.1 million of previously deferred revenue that was included in “Deferred revenue, current” as of December 31, 2019.

Contract assets as of June 30, 2020 and December 31, 2019 were not material.

As of June 30, 2020, we had a total of $ 0.6 million of deferred commissions included in “Prepaid expenses and other current assets” which is recognized as the related revenue is recognized.

Additionally, as a practical expedient, we expense costs to obtain a contract as incurred if the amortization period would have been a year or less.

COMMITMENTS AND CONTINGENCIES

As of March 31, 2020, we leased approximately 180,000 square feet in 1305 O’Brien Drive, Menlo Park, California, where we house our headquarters, research and development, service and support functions.

As of June 30, 2020, we leased approximately 180,000 square feet in 1305 O’Brien Drive, Menlo Park, California, where we house our headquarters, research and development, service and support functions.

We also leased a sales office facility in Singapore and engineering support facilities in Allen, Texas.

16 unchanged sentences

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 March 31, 2020 was 7.6 years.

The weighted average remaining lease term for our operating leases as of June 30, 2020 was 7.3 years.

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 March 31, 2020 was 7.9 %.

The following table presents information as to the amount and timing of cash flows arising from our operating leases as of March 31, 2020:

The weighted average discount rate used to measure our operating lease liabilities as of June 30, 2020 was 7.9 %.

The following table presents information as to the amount and timing of cash flows arising from our operating leases as of June 30, 2020:

Maturity of Lease Liabilities

9 unchanged sentences

Total operating lease liabilities

Cash paid for amounts included in the present value of operating lease liabilities was $ 1.8 million for the three months ended March 31, 2020 and included in operating cash flow.

Cash paid for amounts included in the present value of operating lease liabilities was $ 1.8 million and $ 3.6 million, respectively, for the three and six months ended June 30, 2020 and included in operating cash flow.

Operating Lease Costs

Operating lease costs were $ 1.6 million for both the three months ended March 31, 2020 and 2019, primarily related to our operating leases, but also include immaterial amounts for variable leases.

Operating lease costs were $ 1.6 million and $ 3.1 million for the three and six months ended June 30, 2020, respectively.

Operating lease costs were $ 1.6 million and $ 3.1 million for the three and six months ended June 30, 2019, respectively.

For both 2020 and 2019 the operating lease costs primarily related to our operating leases, but also included immaterial amounts for variable leases.

Contingencies

30 unchanged sentences

The jury declined to find valid or infringed U.S.

We filed post-trial motions with the District Court with respect to the ‘056 Patent, the ‘400 Patent, and the ‘323 Patent, seeking to overturn the validity determinations and requesting a new trial if warranted.

We plan to appeal the decision to the U.S.

Court of Appeals for the Federal Circuit.

Unrelated to the preceding matters, on September 26, 2019, Personal Genomics of Taiwan, Inc.

2 unchanged sentences

The complaint is based on PGI’s U.S.

7,767,441 (the “441 Patent”).

We plan to vigorously defend in this matter.

1 unchanged sentence

A trial for this matter is scheduled to begin on March 14, 2022.

On June 22, 2020, we filed a petition requesting institution of an inter-partes review (IPR) to the Patent Trial and Appeals Board (the “Board”) at the United States Patent Office requesting the Board to find a set of claims in the ‘441 invalid.

On June 27, 2020, we filed a second petition requesting institution of an IPR requesting the Board to find another set of claims in the ‘441 invalid.

The two petitions requesting IPRs assert that all of the claims relevant to the PGI complaint are invalid.

On May 19, 2020, PGI filed a complaint in the Wuhan People’s Court alleging infringement of one or more claims of China patent No.

CN101743321B, which is related to the ‘441 Patent.

We have not received service.

We plan to vigorously defend in this matter.

Other Proceedings

10 unchanged sentences

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.

No additional liability associated with such indemnification obligations has been recorded at March 31, 2020.

No additional liability associated with such indemnification obligations has been recorded at June 30, 2020.

STOCKHOLDERS’ EQUITY

As of March 31, 2020, in total, we had three active equity compensation plans:

As of June 30, 2020, in total, we had three active equity compensation plans:

the 2010 Equity Incentive Plan (“ 2010 Plan”) , the 2010 Outside Director Equity Incentive Plan (“ 2010 Director Plan”) and the 2010 Employee Stock Purchase Plan (“ESPP”).

1 unchanged sentence

After the merger with Illumina was terminated in January 2020, we began offerings under the ESPP again starting with the offering period beginning on March 1, 2020.

Our 2010 Equity Incentive Plan (“ 2010 Plan”) and 2010 Outside Director Equity Incentive Plan (“ 2010 Director Plan”) expired on July 29, 2020.

On August 4, 2020, stockholders at the 2020 Annual Meeting approved a new 2020 Equity Incentive Plan and the 2010 Equity Incentive Plan and 2010 Outside Director Equity Incentive Plan were terminated.

A description of the 2020 Equity Incentive Plan can be found in the Company’s Proxy Statement for the 2020 Annual Meeting of Stockholders, dated June 24, 2020.

Stock Options

The following table summarizes stock option activity for all our stock option plans for the three months ended March 31, 2020 (in thousands, except per share amounts):

The following table summarizes stock option activity for all our stock option plans for the six months ended June 30, 2020 (in thousands, except per share amounts):

Stock Options Outstanding

5 unchanged sentences

Options canceled

Balances, March 31, 2020

For the three months ended March 31, 2020 and 2019, we recognized compensation expense of $ 1.7 million and $ 3.2 million, respectively, related to options.

Balances, June 30, 2020

For the three and six months ended June 30, 2020, we recognized stock-based compensation expense of $ 1.1 million and $ 2.9 million, respectively, related to options.

Restricted Stock Units, or “RSUs”

Time-based RSUs

The following table summarizes the time-based RSUs activity for the three months ended March 31, 2020 (in thousands, except per share amounts):

The following table summarizes the time-based RSUs activity for the six months ended June 30, 2020 (in thousands, except per share amounts):

Weighted average

2 unchanged sentences

RSUs forfeited

Unvested RSUs outstanding at March 31, 2020

For the three months ended March 31, 2020 and 2019, we recognized compensation expense of $ 2.2 million and $ 0.7 million, respectively, related to time-based RSUs.

Unvested RSUs outstanding at June 30, 2020

For the three and six months ended June 30, 2020, we recognized stock-based compensation expense of $ 1.6 million and $ 3.8 million, respectively, related to time-based RSUs.

Performance-based RSUs

The following table summarizes the performance-based RSUs activity for the three months ended March 31, 2020 (in thousands, except per share amounts):

The following table summarizes the performance-based RSUs activity for the six months ended June 30, 2020 (in thousands, except per share amounts):

Weighted average

2 unchanged sentences

PSUs forfeited

Unvested PSUs outstanding at March 31, 2020

For the three months ended March 31, 2020 and 2019, we recognized compensation expense of $ 0 and $ 7,000 , respectively, related to the performance-based RSUs.

Unvested PSUs outstanding at June 30, 2020

For the three and six months ended June 30, 2020, we recognized stock-based compensation expense of $ 0 related to the performance-based RSUs.

In January 2020, an additional 7.7 million shares and 1.5 million shares, respectively, were reserved under the 2010 Plan and the 2010 Director Plan.

As of March 31, 2020, we had an aggregate of 26.4 million shares of common stock reserved and available for future issuance under the 2010 Plan and 2010 Director Plan.

Shares issued under our ESPP were none and 1,306,329 during the three months ended March 31, 2020 and 2019, respectively.

As of June 30, 2020, we had an aggregate of 27.2 million shares of common stock reserved and available for future issuance under the 2010 Plan and 2010 Director Plan.

Shares issued under our ESPP were none and 1,306,329 during the six months ended June 30, 2020 and 2019, respectively.

In January 2020, an additional 3.1 million shares were reserved under the ESPP.

As of March 31, 2020, 6,713,447 shares of our common stock remain available for issuance under our ESPP.

For the three months ended March 31, 2020 and 2019, we recognized compensation expense of $ 129,000 and $ 548,000 , respectively, related to the ESPP shares.

As of June 30, 2020, 6,713,447 shares of our common stock remain available for issuance under our ESPP.

For the three and six months ended June 30, 2020, we recognized stock-based compensation expense of $ 408,000 and $ 537,000 , respectively, related to the ESPP shares.

Stock-Based Compensation

The following table summarizes the stock-based compensation expense for the three months ended March 31, 2020 and 2019, respectively (in thousands):

Three Months Ended March 31,

The following table summarizes the stock-based compensation expense for the three and six months ended June 30, 2020 and 2019, respectively (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Cost of revenue

4 unchanged sentences

The estimated fair value of employee stock options is amortized on a straight-line basis over the requisite service period of the awards.

We did no t grant any stock options for the three months ended June 30, 2020.

We did no t grant any stock options for the year ended December 31, 2019 due to the then-in-process merger with Illumina.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Expected term in years

6 unchanged sentences

After the merger with Illumina was terminated in January 2020, we began offerings under the ESPP again starting with the offering period on March 1, 2020.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Expected term in years

1 unchanged sentence

Risk-free interest rate

0.8 % - 1.0 %

Dividend yield

A summary of our revenue by geographic location for the three months ended March 31, 2020 and 2019 is as follows (in thousands):

Three Months Ended March 31,

A summary of our revenue by geographic location for the three and six months ended June 30, 2020 and 2019 is as follows (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

North America

Europe (including the Middle East and Africa)

A summary of our revenue by category for the three months ended March 31, 2020 and 2019 is as follows (in thousands):

Three Months Ended March 31,

A summary of our revenue by category for the three and six months ended June 30, 2020 and 2019 is as follows (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Instrument revenue

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements