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Income Taxes | 12 Months Ended
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Dec. 31, 2020
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,
| 2020 |  | 2019 |  | 2018
Domestic | $ | (97,313) |  |  | $ | (167,990) |  |  | $ | (394,580) |
Foreign | (6,542) |  |  | (3,274) |  |  | (1,332) |
Loss from continuing operations before income taxes | $ | (103,855) |  |  | $ | (171,264) |  |  | $ | (395,912) |
The components of income tax benefit from continuing operations are presented below:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
United States federal income taxes: |  |  |  |  |
Current | $ | — |  |  | $ | — |  |  | $ | (31) |
Deferred | 37 |  |  | (561) |  |  | (11,855) |
Foreign income taxes: |  |  |  |  |
Current | 74 |  |  | 34 |  |  | 68 |
Deferred | (204) |  |  | (230) |  |  | 635 |
State income taxes: |  |  |  |  |
Current | — |  |  | — |  |  | 113 |
Deferred | 11 |  |  | (173) |  |  | (4,355) |
Income tax benefit from continuing operations | $ | (82) |  |  | $ | (930) |  |  | $ | (15,425) |
Income tax benefit from continuing operations for the years ended December 31, 2020, 2019 and 2018 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:
| 2020 |  | 2019 |  | 2018
Computed statutory income tax benefit from continuing operations | $ | (21,810) |  |  | $ | (35,965) |  |  | $ | (83,141) |
State and provincial income tax benefit, net of federal income taxes | (5,167) |  |  | (5,494) |  |  | (21,717) |
Nondeductible stock based compensation | 5,709 |  |  | 10,303 |  |  | 4,696 |
Nondeductible officer compensation | 728 |  |  | 595 |  |  | 294 |
Impairment of goodwill | — |  |  | 273 |  |  | — |
Research and development tax incentives | (524) |  |  | (1,772) |  |  | (185) |
Acquisition and internal restructuring transaction costs | — |  |  | 260 |  |  | 52 |
Reacquired in-process research and development | — |  |  | — |  |  | 2,696 |
Change in deferred state tax rate | — |  |  | — |  |  | 8,666 |
United States-foreign rate differential | (21) |  |  | (76) |  |  | 215 |
Other, net | (306) |  |  | (72) |  |  | (3,517) |
| (21,391) |  |  | (31,948) |  |  | (91,941) |
Change in valuation allowance for deferred tax assets | 21,309 |  |  | 31,018 |  |  | 76,516 |
Total income tax benefit from continuing operations | $ | (82) |  |  | $ | (930) |  |  | $ | (15,425) |
The tax effects of temporary differences that comprise the deferred tax assets and liabilities included in continuing operations as of December 31, 2020 and 2019, are as follows:
| 2020 |  | 2019
Deferred tax assets |  |  |
Allowance for doubtful accounts | $ | 1,816 |  |  | $ | 2,140 |
Inventory | 289 |  |  | 415 |
Equity securities and investments in affiliates | 570 |  |  | 11,933 |
Property, plant and equipment | 1,882 |  |  | 1,830 |
Intangible assets | 74,981 |  |  | 85,308 |
Accrued liabilities | 1,834 |  |  | 3,385 |
Lease liabilities | 6,140 |  |  | 10,035 |
Stock-based compensation | 16,402 |  |  | 19,389 |
Deferred revenue | 7,423 |  |  | 14,876 |
Research and development tax credits | 10,210 |  |  | 9,686 |
Investments in subsidiaries included in discontinued operations | — |  |  | 8,592 |
Net operating, capital loss, and interest expense carryforwards | 275,519 |  |  | 196,663 |
Total deferred tax assets | 397,066 |  |  | 364,252 |
Less: Valuation allowance | 387,348 |  |  | 349,008 |
Net deferred tax assets | 9,718 |  |  | 15,244 |
Deferred tax liabilities |  |  |
Right-of-use assets | 5,011 |  |  | 8,091 |
Long-term debt | 7,604 |  |  | 9,987 |
Total deferred tax liabilities | 12,615 |  |  | 18,078 |
Net deferred tax liabilities included in continuing operations | $ | (2,897) |  |  | $ | (2,834) |
Activity within the valuation allowance for deferred tax assets included in continuing operations during the years ended December 31, 2020, 2019 and 2018 was as follows:
| 2020 |  | 2019 |  | 2018
Valuation allowance at beginning of year | $ | 349,008 |  |  | $ | 292,217 |  |  | $ | 211,078 |
Increase (decrease) in valuation allowance as a result of |  |  |  |  |
Mergers and acquisitions, net | — |  |  | — |  |  | 418 |
Deconsolidation of AquaBounty | — |  |  | (3,504) |  |  | — |
Establishment of deferred taxes for subsidiaries included in discontinued operations | — |  |  | 8,592 |  |  | — |
Current year continuing operations | 21,309 |  |  | 31,018 |  |  | 98,549 |
Discontinued operations treated as asset sales | 7,977 |  |  | 10,585 |  |  | 3,832 |
Discontinued operations related to MBP Titan | 8,019 |  |  | 9,663 |  |  | 8,735 |
Adoption of ASC 842 | — |  |  | 512 |  |  | — |
Adoption of ASC 606 | — |  |  | — |  |  | (7,477) |
Equity component of long-term debt | — |  |  | — |  |  | (13,367) |
Change in deferred state tax rate | — |  |  | — |  |  | (8,666) |
Foreign currency translation adjustment | 1,035 |  |  | (75) |  |  | (885) |
Valuation allowance at end of year | $ | 387,348 |  |  | $ | 349,008 |  |  | $ | 292,217 |
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, 2020, all such limited losses applicable to Precigen, other than losses inherited via acquisition, have been fully utilized. As of December 31, 2020, 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, 2020, the Company has net operating loss carryforwards for United States federal income tax purposes of approximately $756,200 available to offset future taxable income, including approximately $503,500 generated after 2017, United States capital loss carryforwards of approximately $211,500, and federal and state research and development tax credits of approximately $10,200, 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. The Company's foreign subsidiaries included in continuing operations have foreign loss carryforwards of approximately $82,300, most of which do not expire. As of December 31, 2020, the Company's direct foreign subsidiaries included in continuing operations had accumulated deficits of approximately $21,200. 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, 2020. 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.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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