Subsequent Event

12 Months Ended

Dec. 31, 2018

NOTE 13. SUBSEQUENT EVENT

As disclosed in our Current Report on Form 8-K filed with the Securities and Exchange Commission on February 19, 2019, our board of directors (the “Board”) reinstated the base salaries and target bonus opportunities of Michael Hunkapiller, Ph.D., our Chief Executive Officer, and Susan K. Barnes, our Chief Financial Officer, as part of our annual executive compensation review process.

Increases in Base Salaries: On February 15, 2019, the following annual base salary increases for Dr. Hunkapiller and Ms. Barnes were implemented, effective January 1, 2019:


Name	2018 Base Salary		2019 Base Salary
Michael Hunkapiller, Ph.D.	$	1.00	$	582,900
Susan K. Barnes	$	1.00	$	401,500

2019 Performance Bonuses: In connection with the annual base salary increases noted above, for our 2019 fiscal year, Dr. Hunkapiller’s annual target bonus opportunity was set at 100% of his base salary and Ms. Barnes’ annual target bonus opportunity was set at 65% of her base salary. Consistent with prior years, Dr. Hunkapiller and Ms. Barnes did not participate in our 2018 bonus plan. The 2019 bonuses for both Dr. Hunkapiller and Ms. Barnes will be based upon the achievement of performance objectives that consist of corporate operational, product performance and financial metrics, each with separate, varied weightings, and that are aggressive, but attainable, and align the compensation of Dr. Hunkapiller and Ms. Barnes with the priorities for our company.

2019 RSU Grant: In addition, on February 15, 2019, we granted a restricted stock unit award to each of Dr. Hunkapiller and Ms. Barnes covering 38,750 shares of our common stock and 21,250 shares of our common stock, respectively (the “RSU Awards”). The RSU Awards are scheduled to vest on the earlier of the (i) one-year anniversary of the date of grant of the RSU Awards and (ii) the completion of the Merger, subject to the recipient’s continued service with us through the vesting date.