Company: LGNZZ
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000886163-25-000036
Chunk: 59

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 59
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 of operations includes both realized and unrealized gain (loss) from our short-term investments in public equity and warrant securities.Allowances are recorded for available-for-sale debt securities with unrealized losses. This limits the amount of credit losses that can be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. The provisions of the credit losses standard did not have a material impact on our available-for-sale debt securities during the three months ended March 31, 2025 and 2024.The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):March 31, 2025Amortized CostFair ValueWithin one year$124,947 $124,952 After one year through five years4,705 4,708 Total$129,652 $129,660 Our investment policy is capital preservation and we only invest in U.S.-dollar denominated investments. We held a total of 33 investments which were in an unrealized loss position with a total of $0.02 million unrealized losses as of March 31, 2025. We believe that we will collect the principal and interest due on our debt securities that have an amortized cost in excess of fair value. The unrealized losses are largely due to changes in interest rates and not to unfavorable changes in the credit quality associated with these securities that impacted our assessment on collectability of principal and interest. We do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of the amortized cost basis as of March 31, 2025. Accordingly, there was no credit loss recognized for the three months ended March 31, 2025. Also, there was no credit loss recognized for the three months ended March 31, 2024. 

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Accounts Receivable and Allowance for Credit LossesOur accounts receivable arise primarily from sales on credit to customers. We establish an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity quality indicators