Full Press Release Details
Unaudited Pro Forma Condensed Consolidated Financial Statements
On November, 1, 2022 (the "Distribution Date"), Ligand Pharmaceuticals Incorporated ("Ligand," "Company," "we," "us," or "our") completed the separation (the "Separation") of its antibody discovery business and certain related assets and liabilites (the "OmniAb Business") through a spin-off of OmniAb Operations, Inc. (formerly known as OmniAb, Inc., "Legacy OmniAb") to Ligand's shareholders of record as of October 26, 2022 (the "Record Date") on a pro rata basis (the "Distribution") and merger (the "Merger") of Legacy OmniAb with a wholly owned subsidiary of OmniAb, Inc. (formerly known as Avista Public Acquisition Corp. II, "APAC" or "New OmniAb") in a Reverse Morris Trust transaction (collectively, the "Transactions") pursuant to the Agreement and Plan of Merger, dated as of March 23, 2022, by and among Ligand, Legacy OmniAb, New OmniAb and its then wholly owned subsidiary Orwell Merger Sub, Inc. ("Merger Sub") and the Separation and Distribution Agreement, dated as of March 23, 2022 (the "Separation Agreement"), by and among Ligand, Legacy OmniAb and New OmniAb (collectively with the other related transaction documents, the "Transaction Agreements"). Pursuant to the Transaction Agreements, Ligand contributed (the "Contribution") to Legacy OmniAb cash and certain assets and liabilities constituting the OmniAb Business, including certain related subsidiaries of Ligand, to Legacy OmniAb. In consideration for the Contribution, Legacy OmniAb issued to Ligand additional shares of Legacy OmniAb common stock such that the number of shares of Legacy OmniAb common stock then outstanding equaled the number of shares of Legacy OmniAb common stock necessary to effect the Distribution. Pursuant to the Distribution, Ligand shareholders as of the Record Date received one share of Legacy OmniAb common stock for each share of Ligand common stock held as of such date. Pursuant to the Merger, each share of Legacy OmniAb common stock was thereafter exchanged for the right to receive 4.90007 shares of New OmniAb common stock and 0.75842 shares of New OmniAb common stock subject to certain price-based earnout triggers (the "Earnout Shares"). Upon the closing of the Transactions, the ownership of outstanding New OmniAb common stock (including the Earnout Shares) was as follows Ligand's existing shareholders held approximately 85.0%, APAC's existing public shareholders held approximately 1.1% and the sponsor and related parties of APAC held approximately 13.9%. Fractional shares of New OmniAb common stock were not issued pursuant to the Merger. Instead, shareholders received cash in lieu of any fractional share (other than with respect to Earnout Shares).
The unaudited pro forma condensed consolidated financial statements have been derived from the Company's historical consolidated financial statements and give effect to the Transactions. The unaudited pro forma condensed consolidated statements of operations reflect the Company's results as if the Transactions had occurred as of January 1, 2019. The unaudited pro forma condensed consolidated balance sheet as of June 30, 2022 reflects the Company's financial position as if the Transactions had occurred on such date. After the date of the Transactions, the historical financial results of Legacy OmniAb will be reflected in our consolidated financial statements as discontinued operations under U.S. generally accepted accounting principles ("GAAP") for all periods presented through the Distribution Date.
The unaudited pro forma condensed consolidated financial statements are not intended to be a complete presentation of the Company's financial position or results of operations had the Transactions occurred as of and for the periods indicated. In addition, the unaudited pro forma condensed consolidated financial statements are provided for illustrative and informational purposes only and are not necessarily indicative of the Company's future results of operations or financial condition had the Transactions been completed on the dates assumed. The unaudited pro forma condensed consolidated financial information should be read together with our historical consolidated financial statements and accompanying notes.
The "Historical" column in the unaudited pro forma condensed consolidated financial statements reflects our historical condensed consolidated financial statements for the periods presented and does not reflect any adjustments related to the Transactions.
The "OmniAb Separation" column in the unaudited pro forma condensed consolidated financial statements reflects the operations, assets, liabilities and equity of Legacy OmniAb, which have been derived from Legacy OmniAb's historical condensed combined financial statements prepared on a "carve-out" basis of accounting.
The unaudited pro forma condensed consolidated financial statements have been prepared to include transaction accounting adjustments to reflect the financial condition and results of operations as if we were a separate stand-alone entity in accordance with GAAP. The "Transaction Accounting Adjustments" column in the unaudited pro forma condensed consolidated financial statements reflects the effects of Legacy OmniAb's separation from the Company and includes the following adjustments
the impact of, and transactions contemplated by, the Separation Agreement, the Tax Matters Agreement, dated as of November 1, 2022, by and among New OmniAb, Ligand and Legacy OmniAb, the Amended and Restated Employee Matters Agreement, dated as of August 18, 2022, by and among Ligand, Legacy OmniAb and APAC, and the
Transition Services Agreements, each effective as of the Distribution time, and each by and between Ligand and Legacy OmniAb
the elimination of our net investment in Legacy OmniAb
the Contribution from the Company to Legacy OmniAb
costs incurred in connection with the Transactions and
other adjustments as described in the notes to these unaudited pro forma condensed consolidated financial statements.
The pro forma adjustments represent our best estimates based on information currently available and may differ from those that will be calculated to report Legacy OmniAb as discontinued operations in our future filings.
The unaudited pro forma condensed financial statements have been prepared in accordance with Article 11 of the Securities and Exchange Commissions's Regulation S-X. The unaudited pro forma condensed consolidated financial statements do not include adjustments to reflect any potential synergies that may be achievable, or dis-synergy costs that may occur, in connection with the Transactions.
LIGAND PHARMACEUTICALS INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except per share amounts)
| Historical | OmniAb Separation (a) | Transaction Accounting Adjustments | Notes | Pro Forma Results | |||||||||||||
| ASSETS | |||||||||||||||||
| Current assets | |||||||||||||||||
| Cash and cash equivalents | $ | 5,280 | $ | - | $ | (1,840) | (b) | $ | 3,440 | ||||||||
| Short-term investments | 142,655 | - | - | 142,655 | |||||||||||||
| Accounts receivable, net | 62,308 | 8,180 | 8,180 | (c) | 62,308 | ||||||||||||
| Inventory | 24,773 | - | - | 24,773 | |||||||||||||
| Income taxes receivable | 964 | - | - | 964 | |||||||||||||
| Other current assets | 7,804 | 5,051 | - | 2,753 | |||||||||||||
| Total current assets | 243,784 | 13,231 | 6,340 | 236,893 | |||||||||||||
| Deferred income taxes, net | 35,654 | 822 | - | 34,832 | |||||||||||||
| Intangible assets, net | 528,364 | 169,050 | - | 359,314 | |||||||||||||
| Goodwill | 181,206 | 83,979 | 8,446 | (d) | 105,673 | ||||||||||||
| Commercial license rights, net | 10,267 | - | - | 10,267 | |||||||||||||
| Property and equipment, net | 30,954 | 16,090 | - | 14,864 | |||||||||||||
| Operating lease right-of-use assets | 24,711 | 22,011 | - | 2,700 | |||||||||||||
| Finance lease right-of-use assets | 15,032 | 3 | - | 15,029 | |||||||||||||
| Other assets | 6,316 | 1,448 | - | 4,868 | |||||||||||||
| Total assets | $ | 1,076,288 | $ | 306,634 | $ | 14,786 | $ | 784,440 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
| Current liabilities | |||||||||||||||||
| Accounts payable | $ | 19,153 | $ | 7,383 | $ | 7,383 | (c) | $ | 19,153 | ||||||||
| Accrued liabilities | 14,551 | 2,982 | 2,982 | (c) | 14,551 | ||||||||||||
| Income taxes payable | 3,782 | - | - | 3,782 | |||||||||||||
| Current contingent liabilities | 2,258 | 2,179 | - | 79 | |||||||||||||
| Deferred revenue | 10,584 | 10,199 | - | 385 | |||||||||||||
| Current operating lease liabilities | 2,501 | 1,225 | - | 1,276 | |||||||||||||
| Current finance lease liabilities | 50 | 3 | - | 47 | |||||||||||||
| 2023 convertible senior notes, net | 114,974 | - | - | 114,974 | |||||||||||||
| Total current liabilities | 167,853 | 23,971 | 10,365 | 154,247 | |||||||||||||
| Long-term contingent liabilities | 6,961 | 4,323 | - | 2,638 | |||||||||||||
| Deferred income taxes, net | 42,669 | 18,304 | 24,365 | ||||||||||||||
| Long-term operating lease liabilities | 27,088 | 25,411 | - | 1,677 | |||||||||||||
| Long-term deferred revenue | 7,428 | 7,384 | - | 44 | |||||||||||||
| Other long-term liabilities | 21,924 | 298 | - | 21,626 | |||||||||||||
| Total liabilities | 273,923 | 79,691 | 10,365 | 204,597 | |||||||||||||
| Commitments and contingencies | |||||||||||||||||
| Stockholders' equity | |||||||||||||||||
| Preferred stock, $ 0.001 par value 5,000 shares authorized zero issued and outstanding at June 30, 2022 | - | - | - | - | |||||||||||||
| Common stock, $ 0.001 par value 60,000 shares authorized 16,882 shares issued and outstanding at June 30, 2022 | 17 | - | - | 17 | |||||||||||||
| Additional paid-in-capital Parent company net investment | 335,471 | 226,943 | 4,421 | (b)(c)(d) | 112,949 | ||||||||||||
| Accumulated other comprehensive loss | (1,066) | - | - | (1,066) | |||||||||||||
| Retained earnings | 467,943 | - | - | 467,943 | |||||||||||||
| Total stockholders' equity | 802,365 | 226,943 | 4,421 | 579,843 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 1,076,288 | $ | 306,634 | $ | 14,786 | $ | 784,440 |
LIGAND PHARMACEUTICALS INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2022
(Unaudited, in thousands, except per share amounts)
| Historical | OmniAb Separation (a) | Transaction Accounting Adjustments | Notes | Pro Forma Results | |||||||||||||||||
| Revenues | |||||||||||||||||||||
| Royalties | $ | 31,654 | $ | 402 | $ | - | $ | 31,252 | |||||||||||||
| Captisol - Core | 9,551 | - | - | 9,551 | |||||||||||||||||
| Captisol - COVID | 32,116 | - | - | 32,116 | |||||||||||||||||
| Contract | 29,791 | 16,420 | 13,371 | ||||||||||||||||||
| Total revenues | 103,112 | 16,822 | - | 86,290 | |||||||||||||||||
| Operating costs and expenses | |||||||||||||||||||||
| Cost of Captisol | 17,060 | - | - | 17,060 | |||||||||||||||||
| Amortization of intangibles | 23,637 | 6,518 | 17,119 | ||||||||||||||||||
| Research and development | 39,425 | 22,256 | (1,604) | (e)(f)(g) | 15,565 | ||||||||||||||||
| General and administrative | 32,765 | 9,115 | (1,629) | (e)(f)(g)(h) | 22,021 | ||||||||||||||||
| Other operating income | - | (278) | 278 | ||||||||||||||||||
| Total operating costs and expenses | 112,887 | 37,611 | (3,233) | 72,043 | |||||||||||||||||
| Income (loss) from operations | (9,775) | (20,789) | 3,233 | 14,247 | |||||||||||||||||
| Other income (expense) | |||||||||||||||||||||
| Loss from short-term investments | (14,786) | - | - | (14,786) | |||||||||||||||||
| Interest income | 432 | - | - | 432 | |||||||||||||||||
| Interest expense | (1,227) | - | - | (1,227) | |||||||||||||||||
| Other income, net | 4,580 | - | - | 4,580 | |||||||||||||||||
| Total other expense, net | (11,001) | - | - | (11,001) | |||||||||||||||||
| Income (loss) before income taxes | (20,776) | (20,789) | 3,233 | 3,246 | |||||||||||||||||
| Income tax benefit (expense) | 4,496 | 4,231 | (679) | (i) | (414) | ||||||||||||||||
| Net income (loss) | $ | (16,280) | $ | (16,558) | $ | 2,554 | $ | 2,832 | |||||||||||||
| Basic net income (loss) per share | $ | (0.97) | $ | 0.17 | |||||||||||||||||
| Shares used in basic per share calculation | 16,846 | 16,846 | |||||||||||||||||||
| Diluted net income (loss) per share | $ | (0.97) | $ | 0.17 | |||||||||||||||||
| Shares used in diluted per share calculations | 16,846 | 279 | (j) | 17,125 |
LIGAND PHARMACEUTICALS INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2021
(Unaudited, in thousands, except per share amounts)
| Historical | OmniAb Separation (a) | Transaction Accounting Adjustments | Notes | Pro Forma Results | |||||||||||||
| Revenues | |||||||||||||||||
| Royalties | $ | 48,927 | $ | - | $ | - | $ | 48,927 | |||||||||
| Captisol - Core | 23,423 | - | - | 23,423 | |||||||||||||
| Captisol - COVID | 140,827 | - | - | 140,827 | |||||||||||||
| Contract | 63,956 | 34,748 | 29,208 | ||||||||||||||
| Total revenues | 277,133 | 34,748 | - | 242,385 | |||||||||||||
| Operating costs and expenses | |||||||||||||||||
| Cost of Captisol | 62,176 | - | - | 62,176 | |||||||||||||
| Amortization of intangibles | 47,167 | 12,968 | 34,199 | ||||||||||||||
| Research and development | 69,012 | 39,232 | (3,666) | (e)(f)(g) | 26,114 | ||||||||||||
| General and administrative | 57,483 | 16,947 | 2,106 | (e)(f)(g)(h) | 42,642 | ||||||||||||
| Other operating income | (37,600) | 1,210 | - | (38,810) | |||||||||||||
| Total operating costs and expenses | 198,238 | 70,357 | (1,560) | 126,321 | |||||||||||||
| Income (loss) from operations | 78,895 | (35,609) | 1,560 | 116,064 | |||||||||||||
| Other income (expense) | |||||||||||||||||
| Loss from short-term investments | (3,997) | - | - | (3,997) | |||||||||||||
| Interest income | 886 | - | - | 886 | |||||||||||||
| Interest expense | (19,626) | (7) | - | (19,619) | |||||||||||||
| Other expense, net | (8,860) | 1,266 | - | (10,126) | |||||||||||||
| Total other expense, net | (31,597) | 1,259 | - | (32,856) | |||||||||||||
| Income (loss) before income taxes | 47,298 | (34,350) | 1,560 | 83,208 | |||||||||||||
| Income tax benefit (expense) | 9,840 | 7,308 | (328) | (i) | 2,204 | ||||||||||||
| Net income (loss) | $ | 57,138 | $ | (27,042) | $ | 1,232 | $ | 85,412 | |||||||||
| Basic net income per share | $ | 3.44 | $ | 5.14 | |||||||||||||
| Shares used in basic per share calculation | 16,630 | 16,630 | |||||||||||||||
| Diluted net income per share | $ | 3.31 | $ | 4.95 | |||||||||||||
| Shares used in diluted per share calculations | 17,246 | 17,246 |
LIGAND PHARMACEUTICALS INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2020
(Unaudited, in thousands, except per share amounts)
| Historical | OmniAb Separation (a) | Transaction Accounting Adjustments | Notes | Pro Forma Results | |||||||||||||
| Revenues | |||||||||||||||||
| Royalties | $ | 33,796 | $ | - | $ | - | $ | 33,796 | |||||||||
| Captisol - Core | 24,566 | - | - | 24,566 | |||||||||||||
| Captisol - COVID | 85,393 | - | - | 85,393 | |||||||||||||
| Contract | 42,664 | 23,268 | 19,396 | ||||||||||||||
| Total revenues | 186,419 | 23,268 | - | 163,151 | |||||||||||||
| Operating costs and expenses | |||||||||||||||||
| Cost of Captisol | 30,419 | - | - | 30,419 | |||||||||||||
| Amortization of intangibles | 23,442 | 11,800 | 11,642 | ||||||||||||||
| Research and development | 59,392 | 24,796 | (438) | (e)(f)(g) | 34,158 | ||||||||||||
| General and administrative | 64,435 | 10,225 | 3,022 | (e)(f)(g) | 57,232 | ||||||||||||
| Other operating income | - | 2,070 | - | (2,070) | |||||||||||||
| Total operating costs and expenses | 177,688 | 48,891 | 2,584 | 131,381 | |||||||||||||
| Gain from sale of Vernalis R D | 17,114 | - | - | 17,114 | |||||||||||||
| Income (loss) from operations | 25,845 | (25,623) | (2,584) | 48,884 | |||||||||||||
| Other income (expense) | |||||||||||||||||
| Loss from short-term investments | (16,933) | - | - | (16,933) | |||||||||||||
| Interest income | 8,078 | - | - | 8,078 | |||||||||||||
| Interest expense | (27,420) | (5) | - | (27,415) | |||||||||||||
| Other expense, net | (108) | 1,900 | - | (2,008) | |||||||||||||
| Total other expense, net | (36,383) | 1,895 | - | (38,278) | |||||||||||||
| Income (loss) before income taxes | (10,538) | (23,728) | (2,584) | 10,606 | |||||||||||||
| Income tax benefit | 7,553 | 6,171 | 543 | (i) | 1,925 | ||||||||||||
| Net income (loss) | $ | (2,985) | $ | (17,557) | $ | (2,041) | $ | 12,531 | |||||||||
| Basic net income (loss) per share | $ | (0.18) | $ | 0.77 | |||||||||||||
| Shares used in basic per share calculation | 16,185 | 16,185 | |||||||||||||||
| Diluted net income (loss) per share | $ | (0.18) | $ | 0.74 | |||||||||||||
| Shares used in diluted per share calculations | 16,185 | 640 | (j) | 16,825 |
LIGAND PHARMACEUTICALS INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2019
(Unaudited, in thousands, except per share amounts)
| Historical | OmniAb Separation (a) | Transactional Accounting Adjustments | Notes | Pro Forma Results | |||||||||||||
| Revenues | |||||||||||||||||
| Royalties | $ | 46,976 | $ | - | $ | - | $ | 46,976 | |||||||||
| Captisol - Core | 31,489 | - | - | 31,489 | |||||||||||||
| Captisol - COVID | - | - | - | - | |||||||||||||
| Contract | 41,817 | 18,318 | - | 23,499 | |||||||||||||
| Total revenues | 120,282 | 18,318 | - | 101,964 | |||||||||||||
| Operating costs and expenses | |||||||||||||||||
| Cost of Captisol | 11,347 | - | - | 11,347 | |||||||||||||
| Amortization of intangibles | 16,864 | 10,304 | - | 6,560 | |||||||||||||
| Research and development | 55,908 | 13,208 | (1,873) | (e)(f)(g) | 40,827 | ||||||||||||
| General and administrative | 41,884 | 8,651 | 2,013 | (e)(f)(g) | 35,246 | ||||||||||||
| Other operating income | - | (818) | - | 818 | |||||||||||||
| Total operating costs and expenses | 126,003 | 31,345 | 140 | 94,798 | |||||||||||||
| Gain from sale of Promacta license | 812,797 | - | - | 812,797 | |||||||||||||
| Income (loss) from operations | 807,076 | (13,027) | (140) | 819,963 | |||||||||||||
| Other income (expense) | |||||||||||||||||
| Gain from short-term investments | 1,049 | - | - | 1,049 | |||||||||||||
| Interest income | 28,430 | - | - | 28,430 | |||||||||||||
| Interest expense | (35,745) | - | - | (35,745) | |||||||||||||
| Other expense, net | (4,171) | - | - | (4,171) | |||||||||||||
| Total other expense, net | (10,437) | - | - | (10,437) | |||||||||||||
| Income (loss) before income taxes | 796,639 | (13,027) | (140) | 809,526 | |||||||||||||
| Income tax expense | (167,337) | (562) | 29 | (i) | (166,746) | ||||||||||||
| Net income | $ | 629,302 | $ | (13,589) | $ | (111) | $ | 642,780 | |||||||||
| Basic net income per share | $ | 33.13 | $ | 33.84 | |||||||||||||
| Shares used in basic per share calculation | 18,995 | 18,995 | |||||||||||||||
| Diluted net income per share | $ | 31.85 | $ | 32.53 | |||||||||||||
| Shares used in diluted per share calculations | 19,757 | 19,757 |
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
The adjustments included in the unaudited pro forma condensed consolidated financial statements are described below
(a) Represents the operations, assets, liabilities and equity of Legacy OmniAb, which have been derived from Legacy OmniAb's historical combined financial statements prepared on a "carve-out" basis of accounting.
(b) Represents Ligand's cash contribution to Legacy OmniAb prior to the Distribution in accordance with the Separation Agreement. The contribution amount represents $15 million less approximately $13.2 million of certain transaction and other expenses previously incurred or expected to be incurred by Ligand, which are eligible to be offset against the contribution amount in accordance with the Separation Agreement.
(c) Represents adjustment related to Legacy OmniAb's current accounts receivable, current accounts payable and current accrued liabilities. Pursuant to the Separation Agreement, current accounts receivable, current accounts payable and current accrued liabilities accrued by Legacy OmniAb at any time up to and until the Distribution Date shall be retained by Ligand.
(d) Represents the goodwill allocated between Ligand's two reporting units, the OmniAb Business and the Ligand core business, which correspond to the two entities involved in the Separation. The allocation is based on relative fair value that was analyzed utilizing a combination of income approach and market approach for each segment as of the March 2022 announcement date of our intention to separate the OmniAb Business.
(e) Adjustment represents compensation related costs that were historically assigned to Legacy OmniAb on a carve-out basis of accounting which Ligand expects to be representative of pro forma continuing operations. The pro forma adjustments are summarized below
| For the six months ended June 30, 2022 | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | ||||||||||||
| (in thousands) | |||||||||||||||
| Research and development | $ | 392 | $ | 921 | $ | 614 | $ | 503 | |||||||
| General and administrative | 2,169 | 4,686 | 2,976 | 2,252 | |||||||||||
| $ | 2,561 | $ | 5,607 | $ | 3,590 | $ | 2,755 |
(f) Adjustment represents general corporate overhead costs related to executive management, finance, legal, information technology, and other shared services functions that were historically assigned to Legacy OmniAb on a carve-out basis of accounting which Ligand expects to be representative of pro forma continuing operations. The pro forma adjustments are summarized below
| For the six months ended June 30, 2022 | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | ||||||||||||
| (in thousands) | |||||||||||||||
| Research and development | $ | 399 | $ | 903 | $ | 4,010 | $ | 2,408 | |||||||
| General and administrative | 3,336 | 5,536 | 3,779 | 3,023 | |||||||||||
| $ | 3,735 | $ | 6,439 | $ | 7,789 | $ | 5,431 |
(g) Represents compensation related expenses for the Ligand employees that will be continuing employment at Legacy OmniAb after the consummation of the Transactions. The pro forma adjustment is summarized below
| For the six months ended June 30, 2022 | For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | ||||||||||||
| (in thousands) | |||||||||||||||
| Research and development | $ | (2,395) | $ | (5,490) | $ | (5,062) | $ | (4,784) | |||||||
| General and administrative | (2,181) | (4,414) | (3,733) | (3,262) | |||||||||||
| $ | (4,576) | $ | (9,904) | $ | (8,795) | $ | (8,046) |
(h) Represents the transaction costs directly attributable to the separation of Legacy OmniAb, which will be retrospectively reclassified to discontinued operations upon completion of the Transactions. There were no transaction costs for the years ended December 31, 2020 and 2019, respectively. The pro forma adjustments are summarized below
| For the six months ended June 30, 2022 | For the year ended December 31, 2021 | ||||||
| (in thousands) | |||||||
| General and administrative | $ | (4,953) | $ | (3,702) |
(i) Represents the income tax effect of the pro forma adjustments calculated using enacted statutory rates applicable at the legal entity in which the pro forma adjustment were made. In addition, subsequent to the Transactions, we will evaluate our remaining deferred tax assets and estimate a valuation allowance of approximately $30 million, which will be recorded by Ligand during the fourth quarter of 2022.
(j) Represents shares excluded due to anti-dilutive effect on Ligand historical consolidated net loss for the period presented.
The following table illustrates the accumulated impact of footnotes a, b, c, and d
| June 30, 2022 | |||
| (in thousands) | |||
| Additional paid-in-capital Parent company net investment | |||
| Historical | $ | 335,471 | |
| OmniAb Separation (a) | (226,943) | ||
| Cash distribution to (b) | (1,840) | ||
| Accounts receivable (c) | 8,180 | ||
| Accounts payable (c) | (7,383) | ||
| Accrued liabilities (c) | (2,982) | ||
| Goodwill allocation (d) | 8,446 | ||
| $ | 112,949 |