PACIFIC BIOSCIENCES OF CALIFORNIA, INC.

We are a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions. Our products, including our HiFi long-read sequencing technology, help scientists and clinical researchers understand the genome to resolve genetically complex problems. Our technology addresses applications such as human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. We aim to create advanced sequencing systems that provide customers with a complete and accurate view of genomes, transcriptomes, and epigenomes. Our customers include academic and governmental research institutions, commercial testing and service laboratories, genome centers, public health labs, hospitals and clinical research institutes, contract research organizations ("CROs"), pharmaceutical companies, and agricultural companies. On January 30, 2026, we completed the sale of certain intellectual property and other assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies to Illumina Cambridge Limited. As consideration, Illumina Cambridge Limited paid us $50.0 million in cash and assumed certain liabilities. We also received a non-exclusive license to certain intellectual property included in the purchased assets. In connection with this sale, 4% of the net proceeds from the purchase price will be paid to the former equity holders of Apton Biosystems, Inc. related to the waiver of all remaining milestone obligations associated with our purchase of Apton in August 2023. This payment is expected in the first quarter of 2026. As a result, we received approximately $48.1 million in net cash proceeds from the asset sale.