Pacific Biosciences of California (PACB) 8-K Other Events

Exhibit 99.1

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.

Consolidated Balance Sheets

(unaudited)

	December 31,
(in thousands, except per share amounts)	2015		2014
Assets
Current assets
Cash and cash equivalents	$	33,629	$	36,449
Investments		48,641		64,899
Accounts receivable		5,245		3,406
Inventory		10,955		11,335
Prepaid expenses and other current assets		12,071		1,671
Total current assets		110,541		117,760
Property and equipment, net		8,548		6,601
Long-term restricted cash		4,500		—
Other long-term assets		7,518		29
Total assets	$	131,107	$	124,390
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	4,749	$	5,608
Accrued expenses		15,551		11,441
Deferred service revenue, current		6,815		6,121
Deferred contractual revenue, current		10,822		6,785
Other liabilities, current		241		1,534
Total current liabilities		38,178		31,489
Deferred service revenue, non-current		1,143		1,129
Deferred contractual revenue, non-current		1,312		19,735
Other liabilities, non-current		1,386		2,153
Notes payable		14,948		13,991
Financing derivative		600		944
Total liabilities		57,567		69,441
Commitments and contingencies
Stockholders’ equity
Preferred Stock, $0.001 par value:
Authorized 50,000 shares; No shares issued or outstanding		—		—
Common Stock, $0.001 par value:
Authorized 1,000,000 shares; Issued and outstanding 79,983 and 73,927 shares at December 31, 2015 and 2014, respectively		80		74
Additional paid-in-capital		786,636		736,339
Accumulated other comprehensive income (loss)		(7)		9
Accumulated deficit		(713,169)		(681,473)
Total stockholders’ equity		73,540		54,949
Total liabilities and stockholders’ equity	$	131,107	$	124,390

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.

Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

	Years ended December 31,
(in thousands, except per share amounts)	2015		2014		2013
Revenue:
Product revenue	$	37,502	$	35,299	$	20,039
Service and other revenue		10,896		8,511		6,446
Contractual revenue		44,384		16,784		1,696
Total revenue		92,782		60,594		28,181
Cost of Revenue:
Cost of product revenue		30,704		29,626		15,706
Cost of service and other revenue		8,628		7,566		6,056
Total cost of revenue		39,332		37,192		21,762
Gross profit		53,450		23,402		6,419
Operating Expense:
Research and development		60,440		48,230		45,217
Sales, general and administrative		45,187		38,026		38,745
Gain on lease amendments		(23,043)		—		—
Total operating expense		82,584		86,256		83,962
Operating loss		(29,134)		(62,854)		(77,543)
Interest expense		(2,926)		(2,828)		(2,478)
Other income (expense), net		364		(478)		728
Net loss		(31,696)		(66,160)		(79,293)
Other comprehensive loss:
Unrealized loss on investments		(16)		(5)		(16)
Comprehensive loss	$	(31,712)	$	(66,165)	$	(79,309)
Net loss per share:
Basic and diluted net loss per share	$	(0.42)	$	(0.94)	$	(1.26)
Shares used in computing basic and diluted net loss per share		75,614		70,475		62,784

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.

Consolidated Statements of Cash Flows

(unaudited)

	Years Ended December 31,
(in thousands)	2015		2014		2013
Cash flows from operating activities
Net loss	$	(31,696)	$	(66,160)	$	(79,293)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		3,677		4,221		5,648
Amortization of debt discount and financing costs		957		793		595
Stock-based compensation		13,840		9,943		9,905
Non-cash portion of gain on lease amendments		(3,043)		—		—
Other items		(230)		507		(352)
Changes in assets and liabilities
Accounts receivable		(1,738)		(660)		76
Inventory		(2,466)		(1,285)		(60)
Prepaid expenses and other assets		(17,889)		(224)		840
Accounts payable		(716)		3,891		(1,271)
Accrued expenses		5,732		3,536		1,327
Deferred service revenue		708		2,686		386
Deferred contractual revenue		(14,386)		(6,784)		33,304
Other liabilities		(639)		(1,932)		(938)
Net cash used in operating activities		(47,889)		(51,468)		(29,833)
Cash flows from investing activities
Purchase of property and equipment		(3,009)		(1,609)		(909)
Proceeds from disposal of property and equipment		36		—		—
Long-term restricted cash		(4,500)		—		—
Purchase of investments		(84,579)		(126,413)		(201,547)
Sales of investments		8,317		—		100
Maturities of investments		92,341		147,586		169,239
Net cash provided by (used in) investing activities		8,606		19,564		(33,117)
Cash flows from financing activities
Proceeds from issuance of common stock from equity plans		7,363		3,968		3,079
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs		29,100		38,023		19,927
Proceeds from issuance of debt agreement, net of issuance costs		—		—		19,766
Net cash provided by financing activities		36,463		41,991		42,772
Net increase (decrease) in cash and cash equivalents		(2,820)		10,087		(20,178)
Cash and cash equivalents at beginning of period		36,449		26,362		46,540
Cash and cash equivalents at end of period	$	33,629	$	36,449	$	26,362
Supplemental disclosure of cash flow information
Interest paid	$	1,794	$	1,794	$	1,165
Supplemental disclosure of non-cash investing and financing activities
Inventory transferred to (from) property and equipment		2,846		—		(558)