Company: LBRX
Filing Date: 2025-07-23
Form Type: DRS/A
Source: 0000950123-25-006557
Chunk: 151

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-07-23
Form: DRS/A
Chunk 151
---
 industry market research; (vi) a $0.6 million increase in accounting and audit expenses related to preparation of public company-compliant financial
statements; and (vii) a $0.5 million increase in office and rent expense primarily related to relocation of our corporate office in the third quarter of 2024.

Non-operatingIncome (Expense)

Non-operating income was $1.7 million for the year ended December 31, 2024, compared to
$5.1 million for the year ended December 31, 2023 . The decrease of $3.4 million was primarily due to: (i) a $17.2 million decrease in the gain (loss) on change in fair value of derivative instruments, resulting from a
loss on the change in fair value on warrant liabilities of $0.9 million during 2024 and a $16.3 million gain on the change in fair value of derivative liabilities during 2023; (ii) a $7.4 million loss on extinguishment of debt related
to the conversion of the convertible notes to Series C preferred stock in August 2023, (iii) a $4.8 million decrease in interest expense related to the convertible notes converted to Series C preferred stock in August 2023, and (iv) a
$1.5 million increase in interest income and realized gain related to the increased investment in marketable securities.

Liquidity and Capital Resources

We have incurred net losses and negative cash flows from operations since our inception and anticipate we will
continue to incur net losses for the foreseeable future. To date, we have funded our operations primarily with proceeds from issuances of our redeemable convertible preferred stock, common stock and convertible notes. Through December 31, 2024, our
operations have been financed primarily by gross proceeds of $35.7 million from the issuance of convertible notes and $84.8 million from the sales of shares of redeemable convertible preferred stock. As of December 31, 2024 and 2023, we
had cash and cash equivalents and marketable securities of $28.0 million and $43.3 million, respectively. Until required for use in our business, we typically invest our cash, in accordance with our investment policy, in money market funds
and fixed income securities including U.S. treasury bills and government securities. We attempt to minimize credit risk related to our cash and cash equivalents and marketable securities by maintaining a well-diversified portfolio that limits the