Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 174

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 174
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 assets (disclosed in “Note (6), Financial Royalty Assets, net (formerly known as Commercial License Rights)”), and $4.5 million inventory (raw materials and work in process related to the manufacturing of finished goods) for the preparation of commercial supplies of ZELSUVMI by Pelthos Therapeutics, a wholly owned subsidiary of Ligand. For additional information on ZELSUVMI, see “Note (3), Acquisitions”. Below is a summary of the ZELSUVMI related inventory included in other current assets (in thousands):

86

December 31,20242023Work in process$3,923 $195 Raw materials603 420 Total Pelthos inventory in other current assets$4,526 $615 Accrued liabilitiesAccrued liabilities consist of the following (in thousands): December 31, 20242023Royalties owed to third parties$6,500 $900 Compensation5,522 4,682 UK value-added tax5,159 — Professional fees4,858 2,394 Subcontractor1,756 1,756 Customer deposit 621 621 Supplier— 303 Amounts owed to former licensees— 45 Other3,490 1,766 Total accrued liabilities$27,906 $12,467 Contingent liabilitiesThe following table summarizes roll-forward of contingent liabilities as of December 31, 2024 and 2023 (in thousands):December 31, 2022PaymentsFair Value AdjustmentDecember 31, 2023PaymentsFair Value AdjustmentDecember 31, 2024Cydex$84 $(50)$286 $320 $(200)$263 $383 Metabasis3,429 — (551)2,878 — 420 3,298 Total $3,513 $(50)$(265)$3,198 $(200)$683 $3,681 Other long-term liabilitiesOther long-term liabilities consist of the following (in thousands): December 31, 20242023Novan (Pelthos) contract liability$15,938 $13,700 Unrecognized tax benefits14,160 14,039 Other long-term liabilities65 19 Total other long-term liabilities$30,163 $27,758 

8. Fair Value Measurement

We measure certain financial assets and liabilities at fair value on a recurring basis.