Company: PGEN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001356090-25-000024
Chunk: 77

Company: PRECIGEN, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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 more of its reporting units. During the second quarter of 2025, the Company lowered its financial expectations related to the Exemplar reporting unit for the remainder of 2025 and into 2026 due to projected delays in the timing of planned product and services rendered to existing and new customers. These factors constituted an interim triggering event as of the end of the Company's second quarter of 2025, and the Company performed an impairment analysis with regard to its goodwill.The revised projections were used as a key input into Exemplar's reporting unit’s annual goodwill impairment test performed as of June 30, 2025. The impairment charge of $3,907 represented the estimated excess of carrying value over fair value of this reporting unit. The Company estimated the fair value of its reporting unit utilizing a combination of a discounted present value cash flow model as well as a market earnings multiple approach.Intangible assets consist of the following as of June 30, 2025:Gross Carrying AmountAccumulated AmortizationNetPatents, developed technologies and know-how$15,912 $(12,094)$3,818 Intangible assets consist of the following as of December 31, 2024:Gross Carrying AmountAccumulated AmortizationNetPatents, developed technologies and know-how$15,912 $(11,457)$4,455 Amortization expense were $318 and $1,208 for the three months ended June 30, 2025 and 2024, respectively, and $637 and $2,423 for the six months ended June 30, 2025 and 2024, respectively.

8. Debt

Line of CreditExemplar has a $5,000 revolving line of credit with American State Bank that matures on November 1, 2025. As of June 30, 2025 and December 31, 2024, the line of credit bore interest at a stated rate of 8.00% per annum. As of June 30, 2025 and December 31, 2024, there was no outstanding balance.

9. Income Taxes

The Company computes its year-to-date tax expense or benefit by applying the annual effective tax rate to year-to-date pretax income or loss and adjusts for discrete items recorded in the period. The annual effective tax rate is the ratio of estimated annual income tax expense related to estimated pretax loss from continuing operations, excluding significant unusual or infrequently occurring items. As a result