Company: LGNZZ
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000886163-25-000051
Chunk: 66

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 66
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 in determining the transaction price for our sales of intellectual property. Because of the risk that products in development with our partners will not reach development milestones or receive regulatory approval, we generally recognize any contingent payments that would be due to us upon the development milestone or regulatory approval. Some customer contracts are sublicenses which require that we make payments to an upstream licensor related to license fees, milestones and royalties which we receive from customers. In such cases, we evaluate the determination of gross revenue as a principal versus net revenue as an agent reporting based on each individual agreement.Other income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets.Deferred RevenueDepending on the terms of the arrangement, we may also defer a portion of the consideration received because we have to satisfy a future obligation. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Except for royalty revenue and certain service revenue, we generally receive payment at the point we satisfy our obligation or soon after. Any fees billed in advance of being earned are recorded as deferred revenue. During the three months ended June 30, 2025 and 2024, the amount recognized as revenue that was previously deferred was $0.3 million (all of which was related to Pelthos’ deferred revenue presented in liabilities related to assets held for sale as of June 30, 2025) and $0.5 million, respectively. During the six months ended June 30, 2025 and 2024, the amount recognized as revenue that was previously deferred was $0.6 million (all of which was related to Pelthos’ deferred revenue presented in liabilities related to assets held for sale as of June 30, 2025) and $1.0 million, respectively. Disaggregation of Revenue The following table represents disaggregation of royalties, Captisol and contract revenue and other income (in thousands):

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Three months endedSix months ended June 30,June 30,2025202420252024RoyaltiesKyprolis$8,803 $8,998 $13,526 $15,630 Evomela1,465 2,733 3,446 4,130 Teriparatide injection 2,298 2,103 3,489 4,