Company: PGEN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001356090-25-000019
Chunk: 27

Company: PRECIGEN, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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492 Certificates of deposit— 2,313 — 2,313 Corporate bonds— 129 — 129 Total$— $74,934 $— $74,934 LiabilitiesWarrant liabilities - 2024 Warrants$— $— $83,018 $83,018 Total liabilities$— $— $83,018 $83,018 

16

The following table presents the placement in the fair value hierarchy of financial assets that are measured at fair value on a recurring basis as of December 31, 2024:Quoted Prices in Active Markets(Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)December 31,2024AssetsU.S. government debt securities$— $67,474 $— $67,474 Certificates of deposit— 851 — 851 Corporate bonds— 68 — 68 Total$— $68,393 $— $68,393 LiabilitiesWarrant liabilities - 2024 Warrants$— $— $50,537 $50,537 Total liabilities$— $— $50,537 $50,537 The method used to estimate the fair value of the Level 2 investments in the tables above is based on professional pricing sources for identical or comparable instruments, rather than direct observations of quoted prices in active markets.Warrant liabilitiesThe Warrant liabilities (as defined below) are comprised of outstanding warrants to purchase 52,666,669 shares of common stock, no par value per share at an exercise price of $0.75 per share issued in a private placement in December 2024. The Warrants were accounted for as liabilities as the Warrants provide the holder the right to acquire, via a paid in kind ("PIK") dividend on the Series A Preferred Stock for the first two years following the issue date of the Series A Preferred Stock (see Note 10), a number of additional warrants to purchase shares of common stock equal to 50% of the amount of such PIK dividends divided by the $0.75 exercise price ("PIK Warrants"), upon obtaining Shareholder Approval (as defined in Note 10) which fails the requirement of the indexation guidance under ASC 815-40. Furthermore, the Company does not have a sufficient number of authorized and unissued shares available to share settle the instrument and for