Company: SCLXW
Filing Date: 2025-08-04
Form Type: S-1
Source: 0001193125-25-172703
Chunk: 565

Company: Scilex Holding Co
Filing Date: 2025-08-04
Form: S-1
Chunk 565
---
, 2025 and December 31, 2024 was determined to be $ 15.0 million and $ 12.2 million, respectively, by applying a discount rate of 129.07 % and 128.82 %, respectively. For the three months ended March 31, 2025 and 2024, the Company recorded a loss of $ 2.8 million and $ 3.8 million in change in fair value of the Oramed Note in the unaudited condensed consolidated statements of operations, respectively.

**Tranche B Notes**

In October 2024, the Company entered into the Tranche B Securities Purchase Agreement to issue and sell the Tranche B Notes in the principal amount of $ 50.0 million (see Note 7). The Company elected the fair value option to account for the Tranche B Notes with any changes in the fair value of such notes recorded in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk, if any, which are recorded as a component of other comprehensive income. The

<div align='center'>F-72</div>

**Tranche B Notes are measured at fair value on a recurring basis using Level 3 inputs. The Company uses the Binomial Lattice Model valuation technique to measure the fair value of the Tranche B Notes. The fair value as of March 31, 2025 and December 31, 2024, was determined to be $ 24.5 million and $ 23.6 million, respectively. For the three months ended March 31, 2025, the Company recorded a loss of $ 2.5 million in change in fair value of the Tranche B Notes in the unaudited condensed consolidated statement of operations.

Purchased Revenue Liability

In October 2024, the Company entered into a Purchase and Sale Agreement (“ZTlido Royalty Purchase Agreement”) with certain institutional investors (collectively, the “ZTlido Royalty Investors”) and Oramed (see Note 7). In February 2025, the Company also entered into a Purchase and Sale Agreement (“Gloperba-Elyxyb Royalty Purchase Agreement”) with certain institutional investors (collectively, the “Gloperba-Elyxyb Royalty Investors”) and Oramed (see Note 7). The Company elected the fair value option for the purchased revenue liability for both agreements with changes in fair value recorded