Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segments

Segments

The Company's CODM assesses the operating performance of and allocates resources for several operating segments using Segment Adjusted EBITDA. Management believes this financial metric is a key indicator of operating results since it excludes noncash revenues and expenses that are not reflective of the underlying business performance of an individual enterprise. The Company defines Segment Adjusted EBITDA as net income (loss) before (i) interest expense, (ii) income tax expense or benefit, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) loss on settlement agreements where noncash consideration is paid, (vi) adjustments for accrued bonuses paid in equity awards, (vii) gain or loss on disposals of assets, (viii) loss on impairment of goodwill and other noncurrent assets, (ix) equity in net loss of affiliates, and (x) recognition of previously deferred revenue associated with upfront and milestone payments as well as cash outflows from capital expenditures and investments in affiliates but includes proceeds from the sale of assets in the period sold. During the year ended December 31, 2021, the Company modified the current period definition of Segment Adjusted EBITDA to exclude the gain or loss on disposals of assets and include proceeds from the sale of assets in the period sold. Segment Adjusted EBITDA for the years ended December 31, 2020 and 2019, were restated to reflect this change.

Because the Company uses Segment Adjusted EBITDA as its primary measure of segment performance, it has included this measure in its discussion of segment operating results. The Company has also disclosed revenues from external customers and intersegment revenues for each reportable segment. Corporate expenses are not allocated to the segments and are managed at a consolidated level. The CODM does not use total assets by segment to evaluate segment performance or allocate resources, and accordingly, these amounts are not required to be disclosed. The Company's segment presentation excludes amounts related to the businesses included in the Transactions and the operations of MBP Titan which are reported as discontinued operations (Note 3).

For the year ended December 31, 2021, the Company's reportable segments were (i) Biopharmaceuticals, (ii) Exemplar, and (iii) Trans Ova. These identified reportable segments met the quantitative thresholds to be reported separately for the year ended December 31, 2021. See Note 2 for a description of Biopharmaceuticals. See Note 1 for a description of Exemplar and Trans Ova. The All Other category as reported below reflects Precigen's other operating segments that do not meet the quantitative thresholds to be reported separately.

Segment Adjusted EBITDA by reportable segment was as follows:

	Year Ended December 31,
	2021		2020		2019
Biopharmaceuticals	$	(45,754)	$	(35,378)	$	(44,552)
Exemplar	6,898		4,004		(1,586)
Trans Ova	17,420		13,530		(2,836)
All Other	—		—		(3,501)
Segment Adjusted EBITDA for operating segments	$	(21,436)	$	(17,844)	$	(52,475)

The table below reconciles Segment Adjusted EBITDA for reportable segments to consolidated net loss from continuing operations before income taxes:

	Year Ended December 31,
	2021		2020		2019
Segment Adjusted EBITDA for reportable segments	$	(21,436)	$	(17,844)	$	(48,974)
All Other Segment Adjusted EBITDA	—		—		(3,501)
Remove cash paid for capital expenditures, net of proceeds from sale of assets, and cash paid for investments in affiliates	5,774		389		11,886
Add recognition of previously deferred revenue associated with upfront and milestone payments	2,034		25,005		14,721
Other expenses:
Interest expense	(18,891)		(18,400)		(17,666)
Depreciation and amortization	(13,761)		(15,042)		(16,142)
Loss from disposals of assets	(614)		(4,375)		(3,018)
Impairment losses	(543)		(920)		(30,810)
Loss on settlement agreement	—		(11,436)		—
Stock-based compensation expense	(13,904)		(19,746)		(15,098)
Adjustment related to accrued bonuses paid in equity awards	—		2,833		—
Equity in net loss of affiliates	(3)		(1,138)		(2,416)
Other	(19)		11		67
Unallocated corporate costs	(33,506)		(37,479)		(46,007)
Eliminations	(2,056)		(5,713)		(14,306)
Consolidated net loss from continuing operations before income taxes	$	(96,925)	$	(103,855)	$	(171,264)

Revenues by reportable segment were as follows:

	Year Ended December 31, 2021
	Biopharmaceuticals		Exemplar		Trans Ova		Total
Revenues from external customers	$	922	$	13,345	$	89,606	$	103,873
Intersegment revenues	1,637		—		429		2,066
Total segment revenues	$	2,559	$	13,345	$	90,035	$	105,939

	Year Ended December 31, 2020
	Biopharmaceuticals		Exemplar		Trans Ova		Total
Revenues from external customers	$	21,780	$	10,158	$	71,186	$	103,124
Intersegment revenues	4,797		—		340		5,137
Total segment revenues	$	26,577	$	10,158	$	71,526	$	108,261

	Year Ended December 31, 2019
	Biopharmaceuticals		Exemplar		Trans Ova		All Other		Total
Revenues from external customers	$	6,259	$	6,958	$	68,672	$	4,873	$	86,762
Intersegment revenues	12,908		7		1,361		11		14,287
Total segment revenues	$	19,167	$	6,965	$	70,033	$	4,884	$	101,049

The table below reconciles total segment revenues from reportable segments to total consolidated revenues:

	Year Ended December 31,
	2021		2020		2019
Total segment revenues from reportable segments	$	105,939	$	108,261	$	96,165
Other revenues, including from other operating segments	—		54		9,064
Elimination of intersegment revenues	(2,066)		(5,137)		(14,507)
Total consolidated revenues	$	103,873	$	103,178	$	90,722

Goodwill by reportable segment was as follows:

	Biopharmaceuticals		Exemplar		Trans Ova		Total
Goodwill
Balances at December 31, 2019	$	17,449	$	20,076	$	16,594	$	54,119
Foreign currency translation adjustments	244		—		—		244
Balances at December 31, 2020	17,693		20,076		16,594		54,363
Foreign currency translation adjustments	(215)		—		—		(215)
Balances at December 31, 2021	$	17,478	$	20,076	$	16,594	$	54,148

As of December 31, 2021 and 2020, the Company had $4,463 and $5,908, respectively, of long-lived assets in foreign countries. The Company recognized revenues derived in foreign countries totaling $530, $595, and $1,401 for the years ended December 31, 2021, 2020, and 2019, respectively.