Pacific Biosciences of California (PACB) 8-K Results of Operations and Financial Condition

Exhibit 99.3

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six-Month Periods Ended June 30,
(in thousands)	2014		2013
Cash flows from operating activities
Net loss	$	(38,022)	$	(41,575)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation		2,311		2,897
Amortization of debt discount and financing costs		375		248
Stock-based compensation		4,492		5,190
Other		156		(73)
Changes in assets and liabilities
Accounts receivable		(1,509)		(1,282)
Inventory		610		(293)
Prepaid expenses and other assets		7		1,229
Accounts payable		3,662		(384)
Accrued expenses		459		699
Deferred service revenue		1,582		(97)
Deferred contractual revenue		(3,392)		—
Other liabilities		(607)		(541)
Net cash used in operating activities		(29,876)		(33,982)
Cash flows from investing activities
Purchase of property and equipment		(942)		(577)
Purchase of investments		(66,876)		(111,524)
Maturities of investments		76,195		99,373
Net cash provided by (used in) investing activities		8,377		(12,728)
Cash flows from financing activities
Proceeds from issuance of common stock from equity plans		2,691		1,283
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs		20,646		19,954
Proceeds from issuance of Facility Agreement, net of issuance costs		—		19,766
Net cash provided by financing activities		23,337		41,003
Net increase (decrease) in cash and cash equivalents		1,838		(5,707)
Cash and cash equivalents at beginning of period		26,362		46,540
Cash and cash equivalents at end of period	$	28,200	$	40,833