Company: SCLXW
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0000950170-25-071920
Chunk: 25

Company: Scilex Holding Co
Filing Date: 2025-05-15
Form: 424B3
Chunk 25
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60,979 |

The Oramed Note In September 2023, the Company issued a senior secured promissory note to Oramed in the principal amount of $101.9 million (the “Oramed Note”) (see Note 7). The Company elected the fair value option to account for the Oramed Note with any changes in the fair value of the note recorded in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk, if any, which are recorded as a component of other comprehensive income. The Company uses a discounted cash flow model to determine the fair value of the Oramed Note based on Level 3 inputs. This methodology discounts the interest and principal payments using a risk-adjusted discount rate. The fair value as of March 31, 2025 and December 31, 2024 was determined to be $15.0 million and $12.2 million, respectively, by applying a discount rate of 129.07% and 128.82%, respectively. For the three months ended March 31, 2025 and 2024, the Company recorded a loss of $2.8 million and $3.8 million in change in fair value of the Oramed Note in the unaudited condensed consolidated statements of operations, respectively. Tranche B Notes In October 2024, the Company entered into the Tranche B Securities Purchase Agreement to issue and sell the Tranche B Notes in the principal amount of $50.0 million (see Note 7). The Company elected the fair value option to account for the Tranche B Notes with any changes in the fair value of such notes recorded in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk, if any, which are recorded as a component of other comprehensive income. The Tranche B Notes are measured at fair value on a recurring basis using Level 3 inputs. The Company uses the Binomial Lattice Model valuation technique to measure the fair value of the Tranche B Notes. The fair value as of March 31, 2025 and December 31, 2024, was determined to be $24.5 million and $23.6 million, respectively. For the three months ended March 31, 2025, the Company recorded a loss of $2.5 million in change in fair value of the Tranche B Notes in the unaudited condensed consolidated statement