Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119831
Chunk: 526

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 526
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,798 |   |
| Acquisition related charges                    |     |                         |     485 |   |     |   |     260 |   |
| Prior year true-up and carryback               |     |                         |  (1,182 | ) |     |   |  (5,079 | ) |
| State, net of federal tax benefit              |     |                         |  (2,705 | ) |     |   |  (5,127 | ) |
| Change in fair value of Convertible Debentures |     |                         |  (4,449 | ) |     |   |   1,752 |   |
| Change in tax rates                            |     |                         |   2,155 |   |     |   |  (1,471 | ) |
| Other                                          |     |                         |    (346 | ) |     |   |     655 |   |
| Income tax (benefit) expense                   |     | $                       |      (1 | ) |     | $ |      13 |   |

The Company has evaluated the available evidence supporting the realization of its gross deferred tax assets, including the amount and timing of future taxable income, and has determined that it is more likely than not that the deferred tax assets will not be realized. Due to such uncertainties surrounding the realization of the deferred tax assets, the Company maintains a valuation allowance of $113.7 million against its deferred tax assets as of December 31, 2024. Realization of the deferred tax assets will be primarily dependent upon the Company’s ability to generate sufficient taxable income prior to the expiration of its net operating losses. As of December 31, 2024, the Company had $336.5 million and $248.2 million of federal and state net operating loss carryforwards, respectively. The net operating loss carryforwards begin to expire in 2033 for both federal and state. As of December 31, 2024, the Company had a total of $313.5 million of federal net operating losses F-51

that have an indefinite life and will not expire, and had federal research and development income tax credits of $3.7 million which will begin to expire in 2034. As of December 31, 2024, the Company had California research and development income tax credits of $2.2 million that have an indefinite life and will not expire. Internal Revenue Code Section 382 rules apply to limit a corporation’s ability to