- While completely above board and well-documented in its 10-Q, PACB's accounting of its payouts from ILMN can mislead investors who don't take a closer look at the financials.
- PACB will receive one-time payments of $98M for a termination of merger and $34M of continuation advances from ILMN in 2020.
- These one-time payments will artificially push PACB's net income and cash flow from operations into positive territory for the first time in company history in 2020.
- PACB may be capital-constrained in the future due to stipulations stemming from the termination of merger with ILMN.
For further details see:
Don't Be Fooled By Pacific Biosciences' Accounting Of Merger Termination With Illumina