Company: LBRX
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0001193125-25-197877
Chunk: 390

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 390
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 2023              |     | $     |       — |   |     | $        |       — |   |     | $          |       — |   |

2020 Convertible Notes In 2020, the Company entered into the 2020 Notes with several investors who loaned the Company a total of $10.0 million. The original maturity date for each 2020 Note was three years after issuance. The interest rate was 4% per annum. All payments of interest and principal were due and payable on the maturity date (August and September 2023), unless converted earlier. The principal due under the 2020 Notes would automatically convert into the class of the Company’s stock issued in the Company’s next qualified financing of at least $10.0 million at a conversion price equal to 80% of the per-shareof such securities issued. If the per-shareprice of the next qualified financing was below $2.35, the outstanding principal of the 2020 Notes would have converted at the per-shareprice paid for such securities issued. The accrued interest would either be converted into the stock issued in the qualified financing or paid to the 2020 Note investors in cash at the Company’s discretion. In the event the Company consummated a sale of the Company prior to the conversion or repayment in full of the 2020 Notes, at the closing of such sale of the Company, in lieu of the principal and interest that would have otherwise been payable on the maturity date, the Company would have allowed each holder of the 2020 Notes to convert the principal and interest into common stock at a price per share of $2.50 up until the fifth day prior to the sale of the Company. In the event a holder made no such election within the five-daydeadline, the Company would have paid such holder of the unconverted 2020 Notes an aggregate amount equal to 1.5 times the aggregate amount of principal and interest then outstanding. At inception, the Company concluded that the 2020 Notes contained a conversion option at a significant discount that was deemed to be an embedded derivative, which was required to be bifurcated and accounted for separately from the debt host. The derivative was bifurcated from the host contract and a liability and corresponding discount was recorded on the date of issuances in the total amount of $0.7 million. The liability is remeasured at fair value at the end of each reporting period, with any changes recorded in the accompanying statements of operations. Debt