Company: LBRX
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0001193125-25-197877
Chunk: 374

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 374
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 B Warrants (as defined below) to the investors in the Series B Offering as an inducement to consent to the Series C preferred stock financing (the “Series C Offering”). The Company issued warrants to investors in connection with equity financings. The warrants are required to be measured at fair value and reported as a liability in the accompanying balance sheets. The warrants are valued at each reporting date using the Black-Scholes model with any changes in fair value recorded in the accompanying statements of operations. The valuation of the warrants is considered Level 3 in the fair value hierarchy as the assumptions in the valuation that are both significant to the fair value measurement and unobservable. See Note 8 Redeemable Convertible Preferred Stock and Equityfor additional information. For the years ended December 31, 2024 and 2023, the Company recorded a loss on the change in the fair value of the Level 3 warrant liability of $0.9 million and $0.3 million, respectively, in the accompanying statements of operations. F-17

LB Pharmaceuticals Inc Notes to Financial Statements The following are the assumptions used in the Black-Scholes valuation model in order to determine the fair value of the derivative liabilities for the warrant liabilities for the years ended December 31, 2024 and 2023:

|                                   |     | August 28, 
 2023       |              |   |     | December 31, 
 2023         |              |   |     | December 31, 
 2024         |              |   |
|:----------------------------------|:----|:-----------|-------------:|:--|:----|:-------------|-------------:|:--|:----|:-------------|:-------------|:--|
| Term – financing event (in years) |     |            |         0.50 |   |     |              |            — |   |     |              | —            |   |
| Term – exit event (in years)      |     |            |         1.09 |   |     |              |         0.75 |   |     |              | 0.58 - 2.00  |   |
| Volatility                        |     |            |         67.0 | % |     |              |         57.5 | % |     |              | 49.0% - 70.0 | % |
| Exercise price                    |     | $          | 0