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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of loss from continuing operations before income taxes are presented below:
Year Ended December 31,
202120202019
Domestic$(93,540)$(97,313)$(167,990)
Foreign(3,385)(6,542)(3,274)
Loss from continuing operations before income taxes$(96,925)$(103,855)$(171,264)
The components of income tax benefit from continuing operations are presented below:
Year Ended December 31,
202120202019
United States federal income taxes:
Deferred$37 $37 $(561)
Foreign income taxes:
Current7 74 34 
Deferred(215)(204)(230)
State income taxes:
Deferred11 11 (173)
Income tax benefit from continuing operations$(160)$(82)$(930)
Income tax benefit from continuing operations for the years ended December 31, 2021, 2020, and 2019 differed from amounts computed by applying the applicable United States federal corporate income tax rate of 21% to loss before income taxes as a result of the following:
202120202019
Computed statutory income tax benefit from continuing operations$(20,354)$(21,810)$(35,965)
State and provincial income tax benefit, net of federal income taxes(3,993)(5,167)(5,494)
Nondeductible stock based compensation832 5,709 10,303 
Nondeductible officer compensation1,459 728 595 
Impairment of goodwill— — 273 
Research and development tax incentives(958)(524)(1,772)
Acquisition and internal restructuring transaction costs— — 260 
United States-foreign rate differential(32)(21)(76)
Other, net(46)(306)(72)
(23,092)(21,391)(31,948)
Change in valuation allowance for deferred tax assets22,932 21,309 31,018 
Total income tax benefit from continuing operations$(160)$(82)$(930)
The tax effects of temporary differences that comprise the deferred tax assets and liabilities included in continuing operations as of December 31, 2021 and 2020, are as follows:
20212020
Deferred tax assets
Allowance for doubtful accounts$1,506 $1,816 
Inventory370 289 
Equity securities and investments in affiliates570 570 
Property, plant and equipment— 1,882 
Intangible assets69,679 74,981 
Accrued liabilities3,090 1,834 
Lease liabilities2,839 6,140 
Stock-based compensation15,227 16,402 
Deferred revenue7,300 7,423 
Research and development tax credits11,168 10,210 
Net operating, capital loss, and interest expense carryforwards301,791 275,519 
Total deferred tax assets413,540 397,066 
Less: Valuation allowance408,396 387,348 
Net deferred tax assets5,144 9,718 
Deferred tax liabilities
Property, plant and equipment250 — 
Right-of-use assets2,735 5,011 
Long-term debt4,698 7,604 
Total deferred tax liabilities7,683 12,615 
Net deferred tax liabilities included in continuing operations$(2,539)$(2,897)
Activity within the valuation allowance for deferred tax assets included in continuing operations during the years ended December 31, 2021, 2020, and 2019 was as follows:
202120202019
Valuation allowance at beginning of year$387,348 $349,008 $292,217 
Increase (decrease) in valuation allowance as a result of
Deconsolidation of AquaBounty— — (3,504)
Establishment of deferred taxes for subsidiaries included in discontinued operations— — 8,592 
Current year continuing operations22,932 21,309 31,018 
Discontinued operations treated as asset sales— 7,977 10,585 
Discontinued operations related to MBP Titan(1,186)8,019 9,663 
Adoption of ASC 842— — 512 
Foreign currency translation adjustment(698)1,035 (75)
Valuation allowance at end of year$408,396 $387,348 $349,008 
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Due to the Company and its subsidiaries' histories of net losses incurred from inception, any corresponding net domestic and certain foreign deferred tax assets have been fully reserved as the Company and its subsidiaries cannot sufficiently be assured that these deferred tax assets will be realized. The components of the deferred tax assets and liabilities as of the date of the mergers and acquisitions by the Company prior to consideration of the valuation allowance are substantially similar to the components of deferred tax assets presented herein.
The Company's past issuances of stock and mergers and acquisitions have resulted in ownership changes as defined in Section 382 of the Internal Revenue Code of 1986, as amended ("Section 382"). As a result, utilization of portions of the net operating losses may be subject to annual limitations, however as of December 31, 2021, all such limited losses applicable to Precigen, other than losses inherited via acquisition, have been fully utilized. As of December 31, 2021, approximately $42,100 of the Company's domestic net operating losses were inherited via acquisition and are limited based on the value of the target at the time of the transaction.
As of December 31, 2021, the Company has net operating loss carryforwards for United States federal income tax purposes of approximately $856,400 available to offset future taxable income, including approximately $603,700 generated after 2017, United States capital loss carryforwards of approximately $212,500, and federal and state research and development tax credits of approximately $11,100, prior to consideration of annual limitations that may be imposed under Section 382. Net operating loss carryforwards generated prior to 2018 will begin to expire in 2022, and capital loss carryforwards will expire if unutilized beginning in 2024. As of December 31, 2021, the Company's foreign subsidiaries have foreign loss carryforwards of approximately $75,700, most of which do not expire.
As of December 31, 2021, the Company's direct foreign subsidiaries included in continuing operations had accumulated deficits of approximately $23,100. Future distributions of accumulated earnings of the Company's direct foreign subsidiaries may be subject to United States income and foreign withholding taxes.
The Company and its subsidiaries do not have material unrecognized tax benefits as of December 31, 2021. The Company does not anticipate significant changes in the amount of unrecognized tax benefits in the next 12 months. The Company's tax returns for years 2004 and forward are subject to examination by federal or state tax authorities due to the carryforward of unutilized net operating and capital losses and research and development tax credits.