Company: LGNZZ
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000886163-25-000036
Chunk: 66

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 66
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537 $27,906 Contingent LiabilitiesIn connection with the acquisition of CyDex® in January 2011, we recorded a contingent liability for amounts potentially due to holders of the CyDex CVRs and former license holders. The liability is periodically assessed based on events and circumstances related to the underlying milestones, royalties and material sales. In connection with the acquisition of Metabasis in January 2010, we issued Metabasis stockholders four tradable CVRs for each Metabasis share. The fair values of the CVRs are remeasured at each reporting date through the term of the related agreement. Any change in fair value is recorded in other non-operating expense, net within our condensed consolidated statement of operations. For additional information, see Note 6, Fair Value Measurements.  Other Long-Term LiabilitiesOther long-term liabilities consist of the following (in thousands):March 31,December 31, 20252024Unrecognized tax benefits$14,189 $14,160 Novan (Pelthos) contract liability— 15,938 Other long-term liabilities59 65      Total other long-term liabilities$14,248 $30,163 

17

Share-Based CompensationShare-based compensation expense for awards to employees and non-employee directors is a non-cash expense and is recognized on a straight-line basis over the vesting period. The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):Three months endedMarch 31,20252024SBC - Research and development expenses$904 $678 SBC - General and administrative expenses6,932 6,656      Total SBC expenses$7,836 $7,334 The fair value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:Three months endedMarch 31,20252024Risk-free interest rate4.0%4.3%Dividend yield——Expected volatility45.9%44.6%Expected term (years)4.14.7A limited amount of performance-based restricted stock units (“PSUs”) contain a market condition based on our relative total shareholder return ranked on a percentile basis against the Nasdaq Biotechnology Index over a three-year performance period, with a range of 0% to 200% of the target amount granted