Company: LGNZZ
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000886163-25-000063
Chunk: 111

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 111
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 management cannot reliably estimate future cash flows from this program. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for additional information related to the adoption of ASU 2025-07.

6. Fair Value Measurements

Assets and Liabilities Measured on a Recurring BasisThe following table presents the hierarchy for our assets and liabilities measured at fair value (in thousands):September 30, 2025December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalAssets:Short-term investments(1)$169,376 $355,770 $— $525,146 $122,047 $61,811 $— $183,858 Pelthos Series A Preferred Shares95,978 — — 95,978 — — — — Equity method investment in Pelthos42,000 — — 42,000 — — — — Derivative assets(2)— — 9,351 9,351 — — 10,583 10,583      Total assets$307,354 $355,770 $9,351 $672,475 $122,047 $61,811 $10,583 $194,441 Liabilities:Contingent liabilities - CyDex$— $— $390 $390 $— $— $383 $383 Contingent liabilities - Metabasis(3)— 3,447 — 3,447 — 3,298 — 3,298      Total liabilities$— $3,447 $390 $3,837 $— $3,298 $383 $3,681 (1) Excluding our investment in corporate equity securities and US government securities, our short-term investments in marketable debt and equity securities are classified as available-for-sale securities based on management’s intentions and are at level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. We have classified marketable securities with original maturities of greater than one year as short-term investments based upon our ability and intent to use any or all of those market