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Income Taxes
 12 Months Ended
Dec. 31, 2024
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,
202420232022
Domestic$(85,879)$(93,522)$(76,572)
Foreign(42,149)(2,840)(3,394)
Loss from continuing operations before income taxes$(128,028)$(96,362)$(79,966)
The components of income tax benefit from continuing operations are presented below:
Year Ended December 31,
202420232022
United States federal income taxes:
Deferred$(41)$(247)$37 
Foreign income taxes:
Current— — (39)
Deferred(1,743)(152)(198)
State income taxes:
Current2 21 — 
Deferred(11)(80)11 
Income tax benefit from continuing operations$(1,793)$(458)$(189)
Income tax benefit from continuing operations for the years ended December 31, 2024, 2023, and 2022 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:
202420232022
Computed statutory income tax benefit from continuing operations$(26,886)$(20,236)$(16,793)
State and provincial income tax benefit, net of federal income taxes(4,092)(6,693)(2,884)
Nondeductible stock based compensation313 3,417 179 
Nondeductible officer compensation309 278 263 
Impairment of goodwill551 — 101 
Nondeductible equity investment loss— — 3,093 
Research and development tax incentives(1,750)(1,383)(991)
United States-foreign rate differential(1,081)(15)18 
Other, net60 1,109 533 
(32,576)(23,523)(16,481)
Change in valuation allowance for deferred tax assets30,783 23,065 16,292 
Total income tax benefit from continuing operations$(1,793)$(458)$(189)
The tax effects of temporary differences that comprise the deferred tax assets and liabilities included in continuing operations as of December 31, 2024, and 2023, are as follows:
20242023
Deferred tax assets
Allowance for doubtful accounts$— $48 
Equity securities and investments in affiliates472 413 
Property, plant and equipment237 369 
Intangible assets56,113 64,013 
Accrued liabilities2,478 3,262 
Lease liabilities1,383 1,834 
Stock-based compensation14,205 14,465 
Deferred revenue503 478 
Capitalized research and development cost29,796 23,918 
Research and development tax credits16,232 13,577 
Net operating, capital loss, and interest expense carryforwards283,926 311,154 
Total deferred tax assets405,345 433,531 
Less: (Valuation allowance)404,074 424,432 
Net deferred tax assets1,271 9,099 
Deferred tax liabilities
Right-of-use assets1,271 1,830 
Foreign intangible asset— 9,116 
Total deferred tax liabilities1,271 10,946 
Net deferred tax liabilities included in continuing operations$— $(1,847)
Activity within the valuation allowance for deferred tax assets included in continuing operations during the years ended December 31, 2024, 2023, and 2022 was as follows:
202420232022
Valuation allowance at beginning of year$424,432 $401,086 $408,396 
Increase (decrease) in valuation allowance as a result of
Current year continuing operations30,783 23,065 16,292 
Discontinued operations treated as asset sales— — (27,909)
Expired attributes
(50,269)— — 
Adoption of ASU 2020-06— — 4,698 
Foreign currency translation adjustment(872)281 (391)
Valuation allowance at end of year$404,074 $424,432 $401,086 
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 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, 2024, all such limited losses applicable to Precigen, other than losses inherited via acquisition, have been fully utilized. As of December 31, 2024, approximately $35,800 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, 2024, the Company had net operating loss carryforwards of approximately $969,900 for United States federal income tax purposes available to offset future taxable income, including $757,000 generated after 2017, United States capital loss carryforwards of $100,900, and United States federal and state research and development tax credits of approximately $16,200, prior to consideration of annual limitations that may be imposed under Section 382 of the Internal Revenue Code of 1986, as amended, or ("Section 382"). Net operating loss carryforwards generated prior to 2018 will expire if unutilized from 2025 to 2037, and capital loss carryforwards will expire if unutilized from 2025 to 2027. As a result of our past stock issuances, as well as due to prior mergers and acquisitions, certain of our net operating losses have been subject to limitations pursuant to Section 382. As of December 31, 2024, we had utilized all net operating losses subject to Section 382 limitations, other than those losses inherited via acquisitions. As of December 31, 2024, approximately $69,800 of domestic net operating losses were acquired via acquisition and are limited based on the value of the target at the time of the transaction. Future changes in stock ownership may also trigger an ownership change and, consequently, a Section 382 limitation. As of December 31, 2024, our direct foreign subsidiaries included in continuing operations had foreign loss carryforwards of approximately $69,800, most of which do not expire.

The increase in tax benefit recognized in the twelve months ended December 31, 2024 is primarily caused by the non-cash impairment of ActoBio's developed technology and goodwill, which resulted in the reduction of the associated deferred tax liability, and was recorded as a discrete item during the second quarter of 2024.
The Company and its subsidiaries do not have material unrecognized tax benefits as of December 31, 2024. 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 the years 2005 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.