Company: LGNZZ
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000886163-25-000051
Chunk: 22

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 22
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 alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The amount of such impairment or adjustment recognized during the period is presented in other non-operating expense, net in our condensed consolidated statements of operations.Other investments consist of the following (in thousands):June 30, 2025December 31, 2024Equity securities in Primrose Bio$6,712 $6,712 InvIOs investment4,196 4,196      Total other investments$10,908 $10,908 In connection with the sale of the Pelican business and investment in Primrose Bio transaction in September 2023, since the preferred stock and restricted share investment in Primrose Bio has a substantive liquidation preference, it is not substantially similar to the common stock investment and is therefore recorded as an equity security under ASC 321, Investments - Equity Securities. We determined that the Series A preferred stock and reserve stock investments in Primrose Bio did not have a readily determinable fair value and therefore elected the measurement alternative in ASC 321 to subsequently record the investment at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. When fair value becomes determinable, from observable price changes in orderly transactions, our investment will be marked to fair value. In June 2024, Primrose Bio entered into an equity investment from an equity firm. As a result, our investments in Series A preferred stock and reserve stock were reduced by $25.8 million during the three and six months ended June 30, 2024. There were no observable price changes or impairments identified for the three and six months ended June 30, 2025.

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Accrued LiabilitiesAccrued liabilities consist of the following (in thousands):June 30, 2025December 31, 2024Royalties owed to third parties$5,633 $6,500 Professional fees4,507 4,858 UK value-added tax1,045 5,159 Compensation2,514 5,522 Subcontractor1,756 1,756 Customer deposit621 621 Other1,388 3,490      Total accrued liabilities$17,464 $27,906 Contingent LiabilitiesIn connection with the acquisition of CyDex® in