Company: PGEN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001356090-25-000019
Chunk: 70

Company: PRECIGEN, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 The PIK dividends were determined to be discretionary and as such, they are measured at fair value as of the date they accumulate. Due to the absence of retained earnings, the adjustment to record the value of the PIK dividends is recorded as a reduction to additional paid-in capital.See Note 10 for further discussion on PIK dividends.The fair value of the PIK dividend was estimated using significant unobservable inputs (Level 3) by conducting a discounted cash flow analysis. As of March 31, 2025, the significant assumptions include, (i) stock price of $1.49, (ii) term of 30 years, (iii) volatility of 86.86%, (iv) risk free rate of 4.54%, and (v) risky discount rate of 25%. 

PIK dividends of $1,300 is included in Series A Preferred Stock on the accompanying Condensed Balance Sheet as of March 31, 2025.

6. Property, Plant and Equipment, Net

Property, plant and equipment consist of the following:March 31,2025December 31,2024Land and land improvements$164 $164 Buildings and building improvements2,629 2,629 Furniture and fixtures364 364 Equipment16,773 16,774 Leasehold improvements4,487 4,478 Breeding stock90 88 Computer hardware and software3,210 3,186 Construction and other assets in progress10,131 9,019 37,848 36,702 Less: Accumulated depreciation and amortization(23,180)(22,871)Property, plant and equipment, net$14,668 $13,831 Depreciation expense was $310 and $380 for the three months ended March 31, 2025 and 2024, respectively.

7. Goodwill and Intangible Assets, Net

The carrying amount of goodwill was $19,139 as of March 31, 2025 and December 31, 2024.The Company had $32,282 of cumulative impairment losses as of March 31, 2025 and December 31, 2024.Intangible assets consist of the following as of March 31, 2025:

18

Gross Carrying AmountAccumulated AmortizationNetPatents, developed technologies and know-how$15,912 $(11,776)$4,136 Intangible assets consist of the following as of