Company: LBRX
Filing Date: 2025-08-22
Form Type: S-1
Source: 0001193125-25-186467
Chunk: 356

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-08-22
Form: S-1
Chunk 356
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| Derivative liability - warrants |     |                              |     — |     |         |      — |     |         | 1,557 |     |       |  1,557 |
| Total liabilities               |     | $                            |     — |     | $       |      — |     | $       | 1,557 |     | $     |  1,557 |

Marketable Securities The Company accounts for marketable securities held as “available-for-sale”in accordance with ASC 320, Investments- Debt Securities. The Company classifies these investments as current assets and carries them at fair value. The fair values of the Company’s corporate debt securities are based on prices obtained from independent pricing sources. The fair value of other marketable securities classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sidedmarkets, benchmark securities, bids, offers, and reference data including market research publications. Certificate of Deposit The Company’s certificates of deposit are Level 2 instruments. The fair value of such instruments is estimated based on valuations obtained from third-party pricing services that utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs include interest rate curves, foreign exchange rates, and credit ratings. Note Conversion Feature In August and September 2020, the Company entered into Convertible Promissory Note Purchase Agreements (“2020 Notes”) with a group of lenders who loaned the Company a total of $10.0 million. In October 2022, November 2022, December 2022, and January 2023, the Company entered into Convertible Promissory Note Purchase Agreements (“2022 Notes”) with a group of lenders who loaned the Company a total of $25.7 million. The 2020 Notes and 2022 Notes include conversion features which met the definition of a derivative liability. The conversion features were bifurcated from the host contract and a liability and corresponding discount were recorded on the date of issuance. The liability is remeasured at fair value at the end of each reporting period, with any changes recorded in the accompanying statements of operations. F-16

LB Pharmaceuticals Inc Notes to Financial Statements The 2020 Notes and 2022 Notes would automatically convert into the class of the stock issued in the Company’s next qualified financing at a conversion price equal to 80% of the per-shareprice