Company: SCLXW
Filing Date: 2025-01-17
Form Type: 10-Q
Source: 0000950170-25-006755
Chunk: 344

Company: Scilex Holding Co
Filing Date: 2025-01-17
Form: 10-Q
Item: Item 8
Chunk 344
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 will continue to incur net losses into the foreseeable future as we support our clinical development to expand approved indications, continue our development of, and seek regulatory approvals for, our product candidates, and expand our corporate infrastructure. As a result, we have concluded that there is substantial doubt about our ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued. See Note 2 titled “Liquidity and Going Concern” to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information. Our existing cash and cash equivalents, proceeds from the Revolving Facility and the FSF Deposit, proceeds from the issuance of the Oramed Note and the Tranche B Notes, the issuance of the Common Stock pursuant to the ATM Sales Agreement, and proceeds from the Bought Deal Offering, the Registered Direct Offering and the December RDO may be insufficient to enable us to fund our operating expenses, capital expenditure requirements, and to service our debt obligations (whether under the Oramed Note, the Tranche B Notes, the FSF Deposit or otherwise) for at least the next 12 months. If these sources are insufficient to satisfy our liquidity requirements, we may seek to raise additional funds through equity offerings, debt financings, collaborations, government contracts or other strategic transactions.

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Cash Flows

The following table summarizes our cash flows for each of the periods presented (in thousands):

    Nine Months Ended September 30,

    2024

    2023

    Cash Flow Data:

    Net cash proceeds from (used for) operating activities
     
    $
    16,815

    $
    (15,317
    )

    Net cash used for investing activities

    (2,480
    )

    (163
    )

    Net cash (used for) proceeds from financing activities

    (10,948
    )

    15,276

    Net change in cash, cash equivalents and restricted cash
     
    $
    3,387

    $
    (204
    )

Cash Flows from Operating Activities

For the nine months ended September 30, 2024, net cash proceeds from operating activities were approximately $16.8 million, attributable to our net loss of $66.3 million, offset by other non-cash reconciling items of $28.3 million related to stock-based compensation, change in fair value of debt and liability instruments, allocated expense for warrant issuance cost