Company: PGEN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001356090-25-000024
Chunk: 31

Company: PRECIGEN, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 31
---
 the simulation model for valuing the PIK Warrant as of June 30, 2025, include (i) volatility of 87.1% (discounted for lack of marketability), (ii) risk free interest rate range of 3.8% to 4.2%, (iii) strike price ($0.75), (iii) term to PIK Warrant payment date of one to 2 years, and (vii) expected Company's stock price range to the corresponding PIK Warrant payment date of $0.14 to $5.49. As of December 31, 2024 , the significant assumptions included (i) volatility of 86.2% (discounted for lack of marketability), (ii) risk free interest rate range of 4.1% to 

18

4.2%, (iii) strike price ($0.75), (iii) term to PIK Warrant payment date of one to two years, and (vii) expected Company's stock price range to the corresponding PIK Warrant payment date of $0.06 to $3.05. During the three and six months ended June 30, 2025, the Company recorded a non-cash gain of $4,460 and a non-cash expense of $28,021, respectively, related to the change in the fair value of the Warrants liabilities during the respective period, within other income (expense), net in the accompanying Condensed Consolidated Statements of Operations.  Preferred Stock - PIK DividendsOn December 30, 2024, the Company issued in a private placement 79,000 shares of its 8.00% Series A Convertible Perpetual Preferred Stock (the "Series A Preferred Stock") and warrants to purchase an aggregate of 52,666,669 shares of its common stock (the "Warrants") at an exercise price of $0.75, for gross proceeds of $79,000. In accordance with the Articles of Amendment to the Company's amended and restated articles of incorporation, on each PIK dividend payment date, the stated value of the Series A Preferred Stock shall automatically be increased by the accumulated PIK dividend amount. 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.