Company: LGNZZ
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000886163-25-000036
Chunk: 34

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 34
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. During the three months ended March 31, 2025 and 2024, we recorded a change in the fair value of the Metabasis CVR liability that amounted to $1.8 million and $(0.1) million, respectively, to mark to market. A reconciliation of the level 3 financial instruments as of March 31, 2025 is as follows (in thousands):AssetsFair value of level 3 financial instruments as of December 31, 2024$10,583 Additions to derivative assets7,620 Fair value adjustments to derivative assets(174)Fair value of level 3 financial instruments as of March 31, 2025$18,029 LiabilitiesFair value of level 3 financial instruments as of December 31, 2024$383 Payments to CVR holders and other contingent payments(50)Fair value adjustments to contingent liabilities55 Fair value of level 3 financial instruments as of March 31, 2025$388 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 with estimated useful lives, or long-lived assets recorded during the three months ended March 31, 2025 and 2024.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 are financial instruments and are recorded at cost in the condensed consolidated balance sheets. The estimated fair value of the remaining financial instruments approximates their carrying value.

7. Debt 

Revolving Credit FacilityOn October 12, 2023, we entered into a $75 million revolving credit