Company: LGNZZ
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000886163-25-000036
Chunk: 60

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 60
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 for industry groups, customer classes or individual customers. During the three months ended March 31, 2025 and 2024, we considered the current and expected future economic and market conditions and concluded an increase of $0.3 million and a decrease of $0.3 million in the aggregate of general 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 months ended March 31, 2025 and 2024. In addition to finished goods, as of March 31, 2025 and December 31, 2024, inventory included prepayments of $2.8 million and $3.1 million, respectively, to our supplier for Captisol.Goodwill and Other Identifiable Intangible AssetsGoodwill and other identifiable intangible assets consist of the following (in thousands):March 31,December 31,20252024Indefinite-lived intangible assets     Goodwill$101,541 $105,250 Definite lived intangible assets     Complete technology39,249 39,249           Less: accumulated amortization(20,347)(19,710)     Trade name2,642 2,642           Less: accumulated amortization(1,877)(1,843)     Customer relationships29,600 29,600           Less: accumulated amortization(21,025)(20,652)    Contractual relationships360,000 360,000           Less: accumulated amortization(129,851)(122,638)    Total definite lived intangible assets258,391 266,648 Total goodwill and other identifiable intangible assets, net$359,932 $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