Company: LGNZZ
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000886163-25-000036
Chunk: 23

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 23
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 for sale occurs when sufficient authority to sell the disposal group has been obtained, the disposal group is available for immediate sale and its sale is probable within one year. If at any time these criteria are no longer met, the disposal group would be reclassified as held and used. Assets classified as held for sale are recorded at the lower of their carrying amount or fair value less costs to sell and are not depreciated or amortized. We evaluate the held for sale classification during each reporting period. The disposal group did not meet the requirements for presentation as discontinued operations and are included in income from continuing operations for the three months ended March 31, 2025.We did not have any assets held for sale as of December 31, 2024. The following table presents the carrying amounts of major classes of assets and liabilities related to assets held for sale with respect to the Pelthos divestiture as of March 31, 2025.

19

March 31, 2025Assets:   Cash and cash equivalents$78    Accounts receivable, net167    Other current assets6,017    Property and equipment, net11,040    Goodwill3,709    Operating lease right-of-use assets3,549    Deferred income taxes, net4,596    Other assets529       Total assets held for sale$29,685 Liabilities:   Accounts payable$532    Accrued liabilities1,632    Deferred revenue1,125    Current operating lease liabilities621    Long-term deferred revenue2,005    Long-term operating lease liability3,030    Other long-term liabilities16,564       Total liabilities related to assets held for sale$25,509 

The estimated fair value of the Novan (Pelthos) other long-term liabilities was $19.4 million compared to a carrying value of $16.6 million as of March 31, 2025. The estimated fair value of the Novan (Pelthos) other long-term liabilities was $19.1 million compared to a carrying value of $15.9 million as of December 31, 2024. 

3. Castle Creek and Agenus Transactions

Castle Creek TransactionOn February 24, 2025, we entered into a Purchase and Sale Agreement (the “Castle Creek Investment” transaction) with Castle Creek Biosciences, Inc., Castle Creek Biosciences, LLC (collectively, “Castle Creek”) and a