Company: LGNZZ
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000886163-25-000051
Chunk: 17

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 17
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 and specific allowance for credit losses, respectively.InventoryInventory, which consists of finished goods (Captisol), is stated at the lower of cost or net realizable value. We determine cost using the specific identification method. We analyze our inventory levels periodically and write down inventory to net realizable value if it has become obsolete, has a cost basis in excess of its expected net realizable value or is in excess of expected requirements. There was no obsolete inventory charge recorded during the three and six months ended June 30, 2025. There was $0.2 million obsolete inventory charge recorded during the three and six months ended June 30, 2024. In addition to finished goods, as of June 30, 2025 and December 31, 2024, inventory included prepayments of $2.6 million and $3.1 million, respectively, to our supplier for Captisol.

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Goodwill and Other Identifiable Intangible AssetsGoodwill and other identifiable intangible assets consist of the following (in thousands):June 30, 2025December 31, 2024Indefinite-lived intangible assets     Goodwill$101,541 $105,250 Definite lived intangible assets     Complete technology39,249 39,249           Less: accumulated amortization(20,984)(19,710)     Trade name2,642 2,642           Less: accumulated amortization(1,910)(1,843)     Customer relationships29,600 29,600           Less: accumulated amortization(21,398)(20,652)    Contractual relationships360,000 360,000           Less: accumulated amortization(137,066)(122,638)    Total definite lived intangible assets250,133 266,648 Total goodwill and other identifiable intangible assets, net$351,674 $371,898 Financial Royalty Assets, netFinancial royalty assets represent a portfolio of future milestone and royalty payment rights acquired that are passive in nature (i.e., we do not own the intellectual property or have the right to commercialize the underlying products).Although a financial royalty asset does not have the contractual terms typical of a loan (such as contractual principal and interest), we account for financial royalty assets under ASC 310, Receivables. Our financial royalty assets are classified similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC