Company: LGNZZ
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000886163-25-000063
Chunk: 87

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 87
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Goodwill and other identifiable intangible assets consist of the following (in thousands):September 30, 2025December 31, 2024Indefinite-lived intangible assets     Goodwill$101,541 $105,250 Definite lived intangible assets     Complete technology$29,619 $39,249           Less: accumulated amortization(20,333)(19,710)     Trade name2,642 2,642           Less: accumulated amortization(1,943)(1,843)     Customer relationships29,600 29,600           Less: accumulated amortization(21,771)(20,652)    Contractual relationships360,000 360,000           Less: accumulated amortization(144,279)(122,638)    Total definite lived intangible assets233,535 266,648 Total goodwill and other identifiable intangible assets, net$335,076 $371,898 Financial Royalty Assets, netFinancial royalty assets represent a portfolio of future milestone and royalty payment rights acquired that are passive in nature (i.e., we do not own the intellectual property or have the right to commercialize the underlying products).Although a financial royalty asset does not have the contractual terms typical of a loan (such as contractual principal and interest), we account for financial royalty assets under ASC 310, Receivables. Our financial royalty assets are classified similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC 835-30, Imputation of Interest.The effective interest rate is calculated by forecasting the expected cash flows to be received over the life of the asset relative to the initial invested amount. The effective interest rate is recalculated in each reporting period as the difference between expected cash flows and actual cash flows are realized and as there are changes to expected future cash flows.The gross carrying value of a financial royalty asset is made up of the opening balance, or net purchase price for a new financial royalty asset, which is increased by accrued interest income (except for assets under the non-accrual method) and decreased by cash receipts in the period to arrive at the ending balance.We evaluate financial royalty assets for recoverability on an individual basis by comparing the effective interest rate at each reporting date to that of the prior period. If the effective interest rate is lower for the current period than the prior period, and if the gross cash flows have declined (expected and collected), we