Company: PGEN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001356090-25-000024
Chunk: 85

Company: PRECIGEN, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 85
---
 employees of the Company. The PSUs granted are scheduled to vest one year from grant date, but only if the approval of the BLA by the FDA occurs prior to such date.RSU and PSU activity was as follows:Number of RSUs and PSUsWeighted Average Grant Date Fair ValueWeighted Average Remaining Contractual Term (Years)Balances at December 31, 20244,004,057 $1.16 0.55Granted6,863,489 1.41 Vested(5,754,860)(1.31)Forfeited(46,000)(1.18)Balances at June 30, 20255,066,686 1.34 0.86With respect to the awards granted in 2024 with two specified milestones, as of the award grant date, the underlying performance milestone relating to the Company's submission of a BLA to the FDA was considered probable of achievement and stock-based compensation expense was recognized during the year ended December 31, 2024 related to this milestone. As of the award grant date, the underlying performance milestone related to the approval of the BLA by the FDA was determined to be not probable of achievement, as such approval is outside of the Company's control. Therefore, no stock-based 

24

compensation expense was recognized for the three and six months ended June 30, 2025 and during 2024 related to this milestone.Precigen uses treasury shares (to the extent available) and authorized and unissued shares to satisfy share award exercises.

12. Operating Leases

The Company leases certain facilities and equipment under operating leases. Leases with a lease term of twelve months or less are considered short-term leases and are not recorded on the balance sheet, and expense for these leases is recognized over the term of the lease. All other leases have remaining terms of less than one year to five years, some of which may include options to extend the lease and some of which may include options to terminate the lease within one year. The Company uses judgment to determine whether it is reasonably possible to extend the lease beyond the initial term or terminate before the initial term ends and the length of the possible extension or early termination. The leases are renewable at the option of the Company and do not contain residual value guarantees, covenants, or other restrictions. The components of lease costs were as follows:Three Months Ended  June 30,Six Months Ended  June 30,2025202420252024Operating lease