Company: LGNZZ
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000886163-25-000063
Chunk: 42

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 1
Chunk 42
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 1, Basis of Presentation and Summary of Significant Accounting Policies, for additional information related to the adoption of ASU 2025-07.

6. Fair Value Measurements

Assets and Liabilities Measured on a Recurring BasisThe following table presents the hierarchy for our assets and liabilities measured at fair value (in thousands):September 30, 2025December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalAssets:Short-term investments(1)$169,376 $355,770 $— $525,146 $122,047 $61,811 $— $183,858 Pelthos Series A Preferred Shares95,978 — — 95,978 — — — — Equity method investment in Pelthos42,000 — — 42,000 — — — — Derivative assets(2)— — 9,351 9,351 — — 10,583 10,583      Total assets$307,354 $355,770 $9,351 $672,475 $122,047 $61,811 $10,583 $194,441 Liabilities:Contingent liabilities - CyDex$— $— $390 $390 $— $— $383 $383 Contingent liabilities - Metabasis(3)— 3,447 — 3,447 — 3,298 — 3,298      Total liabilities$— $3,447 $390 $3,837 $— $3,298 $383 $3,681 (1) Excluding our investment in corporate equity securities and US government securities, our short-term investments in marketable debt and equity securities are classified as available-for-sale securities based on management’s intentions and are at level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. We have classified marketable securities with original maturities of greater than one year as short-term investments based upon our ability and intent to use any or all of those marketable securities to satisfy the liquidity needs of our current operations. (2