Company: LBRX
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0001193125-25-197877
Chunk: 382

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 382
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arrant holder received the right to convert its Class A Warrants into the number of shares of
common stock issuable upon exercise of the Class A Warrants, at no cost and for an exercise price of zero ($0.00) per share. On May 3, 2022, the Company settled the warrant liability and converted less than 0.01 million Class A
Warrants to common stock. The difference in fair value based on the change in the exercise price of the warrants of less than $0.01 million was recorded to gain (loss) on change in fair value of derivative instruments in the accompanying
statement of operations.

Pursuant to the anti-dilution terms contained in the Class A Warrants, any Class A Warrant holder who chose not to
participate in the Rights Offer received a reduction in the exercise price of the Class A Warrants from $64.14 per share to $63.30 per share, calculated based on the amount of common stock issued upon conversion of the Class A Warrants in
the Rights Offer.

The Class B Warrants issued as part of the Series A Offering remain outstanding and were not impacted by the Class A
Warrant conversions.

In August 2023, as part of the Series C Offering, the Company modified the outstanding Class A Warrants, Class B Warrants
and Class B-1 Warrants reducing the exercise price to $0.01. The Company recorded a gain on the change in fair value of $0.8 million to gain (loss) on change in fair value of derivative instruments in the
accompanying statement of operations for the year ended December 31, 2023.

Additionally, the Company issued less than 0.01 million new
warrants to the Series B preferred stockholders at a strike price of $41.83 per share (“New Series B Warrants”), allowing the Series B preferred stockholders to purchase common stock in an amount equal to 33.33% of their current Series B
Preferred holdings. The New Series B Warrants were immediately exercisable and expire five years after issuance. The New Series B Warrants were issued as an incentive for the Series B stockholders to consent to the Series C Offering. The issuance of
the New Series B Warrants was considered an inducement offer under ASC 470, Debt and the Company recorded financing costs based on the grant date fair value of the New Series B Warrants to other expense in the accompanying statement of
operations for the year ended