Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 195

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 195
---
-U.S. net operating loss carryovers and approximately $16.5 million of non-U.S. capital loss carryovers that have no expiration date. Pursuant to Section 382 and 383 of the Internal Revenue Code of 1986, as amended, utilization of our net operating losses and credits may be subject to annual limitations in the event of any significant future changes in its ownership structure. These annual limitations may result in the expiration of net operating losses and credits prior to utilization. The deferred tax assets as of December 31, 2024 are net of any previous limitations due to Section 382 and 383.We account for income taxes by evaluating a probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Our remaining liabilities for uncertain tax positions are presented net of the deferred tax asset balances on the accompanying consolidated balance sheet.A reconciliation of the amount of unrecognized tax benefits at December 31, 2024, 2023 and 2022 is as follows (in thousands):December 31,202420232022Balance at beginning of year$22,363 $29,096 $29,550      Additions based on tax positions related to the current year27 47 58      Additions for tax positions of prior years477 3 —      Reductions for tax positions of prior years(396)(6,783)(512)Balance at end of year$22,471 $22,363 $29,096 Included in the balance of unrecognized tax benefits at December 31, 2024 is $20.7 million of tax benefits that, if recognized would impact the effective rate. There are no positions for which it is reasonably possible that the uncertain tax benefit will significantly increase or decrease within twelve months.We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2024 and December 31, 2023, we recognized an immaterial amount of interest and penalties. We file income tax returns in the United States, various state jurisdictions, Austria, and United Kingdom with varying statutes of limitations. The federal statute of limitation remains open for the 2021 tax year to the present. he United Kingdom statute of limitation remains open for the 2020 tax year to the present.