Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 33

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 9A
Chunk 33
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 evaluation of the effectiveness of our internal control over financial reporting based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) as set forth in the 2013 Internal Control-Integrated Framework. Based on our evaluation under the 2013 framework in Internal Control - Integrated Framework, management concluded that we have remediated our previously reported material weakness in our disclosure controls and procedures and our internal controls over financial reporting were effective as of December 31, 2024.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

The following material weakness was identified by the Company in its fiscal year ended December 31, 2023: management concluded that the Company did not implement and maintain effective controls related to the valuation of the acquired intangible and contract liability, specifically controls over the review of cash flow forecasts used in the valuation of the acquired intangible asset and the discount rate used in the valuation of the contract liability. The deficiencies in our internal control over financial reporting due to the material weakness described above did not result in any misstatement in our consolidated financial statements or other disclosures. These deficiencies created, however, a reasonable possibility that a material misstatement in our consolidated financial statements would not be prevented or detected on a timely basis.

100

Remediation of Certain Previously Identified Material Weaknesses in Internal Control over Financial Reporting

In an effort to address the identified material weakness and enhance our internal controls related to our business combination purchase price allocation process, we continue to maintain our financial reporting process we followed to prepare consolidated financial statements in accordance with GAAP for audit committee meetings on a quarterly and annual basis. We have hired additional accounting personnel and third party consultants with appropriate knowledge, experience, and/or training commensurate with our technical accounting and financial reporting requirements to enhance the process going forward. Our ongoing remediation efforts are focused on continued employee training related to internal control over financial reporting. As a result of these remediation activities, management has determined that management's controls were designed appropriately and at a sufficient level of precision, and have been operating effectively for a sufficient period of time, such that the material weakness previously identified as of December 31, 2023 has been remediated as of December 31, 2024.

Changes in Internal Control over Financial Reporting

Except as discussed above, there were no changes in