Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 178

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 178
---
 (in thousands):AssetsFair value of level 3 financial instruments as of December 31, 2022$135 Fair value adjustments to equity security warrants(135)Additions to derivative assets3,281 Fair value adjustments to derivative assets250 Fair value of level 3 financial instruments as of December 31, 2023$3,531 LiabilitiesFair value of level 3 financial instruments as of December 31, 2022$84 Payments to CVR holders and other contingency payments(50)Fair value adjustments to contingent liabilities286 Fair value of level 3 financial instruments as of December 31, 2023$320 Assets Measured on a Non-Recurring BasisWe apply fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to our goodwill, intangible assets with estimated useful lives and long-lived assets.We evaluate goodwill annually for impairment and whenever circumstances occur indicating that goodwill might be impaired. We determine the fair value of our reporting unit based on a combination of inputs, including the market capitalization of Ligand, as well as Level 3 inputs such as discounted cash flows, which are not observable from the market, directly or indirectly.We evaluate intangible assets with estimated useful lives whenever circumstances occur indicating that intangible assets may not be recoverable. An impairment evaluation is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of assets and liabilities.There was no impairment of our goodwill, intangible assets, or long-lived assets recorded during the years ended December 31, 2024 and 2023. Other than the finance lease equipment discussed in “Note (9), Leases”, there was no impairment of our goodwill, intangible assets, or long-lived assets recorded during the year ended and December 31, 2022. Fair Value of Financial InstrumentsOur cash and cash equivalents, accounts receivable, other current assets, financial royalty assets, accounts payable, accrued liabilities, deferred revenue, current operating lease liabilities, current finance lease liabilities and Novan (Pelthos) other long-term liabilities are financial instruments and are recorded at cost in the consolidated balance sheets. The estimated 

89

fair value of the Novan (Pelthos) other long-term liabilities is $19.1 million compared to a carrying value of $15.9 million. The estimated fair value of the remaining financial instruments approximates their carrying value.Financial Assets Not Measured at