Company: LBRX
Filing Date: 2025-07-23
Form Type: DRS/A
Source: 0000950123-25-006557
Chunk: 343

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-07-23
Form: DRS/A
Chunk 343
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Concentration of Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and marketable
securities.

Segment Information

The
Company operates as a single reportable segment in the development of novel therapies for the treatment of neuropsychiatric diseases, including schizophrenia. The Company has not generated revenues since inception. The Company’s chief operating
decision maker (“CODM”) is its Chief Executive Officer (“CEO”). The CODM reviews the Company’s performance on an aggregate basis, thus the segment’s loss is the Company’s net loss, as reported on accompanying
statements of operations, and the segment’s assets are the Company’s total assets, as reported on the accompanying balance sheets. Significant expenses provided to the CODM include research and development and general and administrative
expenses, as reported on the accompanying statements of operations.

The CODM uses the information primarily to evaluate the Company’s performance
and allocate resources. This includes reviewing key financial metrics such as budget versus actual expenditures and assessing overall cash flow and liquidity to ensure the continuity of operations. This approach allows the CODM to monitor the
Company’s performance and make strategic adjustments as needed to support its operational and financial goals.

The Company’s operations and all
long-lived assets are located in the United States.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash
equivalents primarily consist of balances held at one financial institution and in money market funds. Cash balances may, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) amounts. Management periodically assesses the
financial condition of the banking institution and believes that any potential credit loss is minimal. As of December 31, 2024 and 2023, the Company’s cash balance exceeded the FDIC insured limit of $250,000.

Restricted Cash

Restricted cash primarily
consists of certificates of deposit that are held as collateral against the letter of credit that the Company is required to maintain for its operating lease agreement.

F-9

LB Pharmaceuticals Inc Notes to Financial Statements Marketable Securities The Company accounts for marketable securities held as “available-for-sale”in accordance with Accounting Standards Codification (“ASC”) 320, Investments-Debt Securities.The Company classifies these investments as current assets and carries them at fair value. Unrealized gains and losses are recorded as a separate component of stockholders’ deficit as accumulated other comprehensive income. Realized gains or losses on