Company: PGEN
Filing Date: 2025-05-16
Form Type: DEF 14A
Source: 0001140361-25-019470
Chunk: 85

Company: PRECIGEN, INC.
Filing Date: 2025-05-16
Form: DEF 14A
Chunk 85
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 important component of our executive compensation program, motivating officers and employees, non-employee directors, and other service providers to make decisions that focus on creating long-term value for shareholders, aligning their interests with the interests of shareholders, and serving as an effective recruitment and retention tool. Historical Burn Rate . We are committed to managing the use of our equity incentives prudently to balance the benefits equity compensation brings to our compensation program with the dilution it causes our shareholders. As part of our analysis when considering the proposed share increase, we considered the 2013 Plan’s and 2023 Plan’s three-year average “burn rate,” or the number of shares subject to equity awards 65

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granted from the first quarter of 2022 through the first quarter of 2025, divided by the weighted average number of shares outstanding for that period. For each of 2024, 2023, and 2022, our “burn rate” was 4.5%, 3.9%, and 2.2%, respectively. We also considered that during the period commencing in the first quarter of 2022 through the first quarter of 2025, we made equity grants in connection with the following: leadership appointments to advance our efforts; the compensation of employees who we believe are critical to furthering our business strategy; equity grants in lieu of cash compensation; and incentivizing our key officers and employees. We believe these new hires and compensation decisions are critical to the development and strength of our senior management team to attract the experience and talent necessary to further implement our strategy. Overhang Percentage . Over the period from January 1, 2022 through March 31, 2025, our overhang percentage has averaged 14.9%, which is based on (i) approximately 24,289,476 shares subject to outstanding equity awards under the 2013 Plan, 2019 Plan and 2023 Plan, (ii) 14,630,623 shares available for future equity awards under the 2019 Plan and 2023 Plan, and (iii) 261,268,319 shares of the Company outstanding on a fully-diluted basis. The following table sets forth the total equity dilution as of April 25, 2025:

| Number of Stock Options Outstanding            |     |  25,898,681 |
| Weighted Average Exercise Price                |     |       $4.70 |
| Weighted Average Term (in years)               |