Company: LBRX
Filing Date: 2025-08-22
Form Type: S-1
Source: 0001193125-25-186467
Chunk: 353

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-08-22
Form: S-1
Chunk 353
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ing fees, contract research for preclinical studies, drug formulation, supply and handling and data collection. Advance payments for goods or services to be received in the future for use in research and development activities are recorded as
prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed.

The value of goods and services
received from the contract research organization (“CRO”) and other third parties are accrued each reporting period based on estimates of the level of services performed and progress in the period when invoices have not been received from
such organizations. When evaluating the adequacy of the accrued liabilities, the progress of the studies or clinical trials are analyzed, including the phase or completion of events, invoices received and contracted costs. Significant judgments and
estimates are made in determining the accrued balances at the end of any reporting period. Accruals are adjusted as actual costs become known or as additional information becomes available.

General and Administrative

General and
administrative costs include expenditures that are not directly related to research and development. General and administrative costs include costs for support and administrative functions including salaries and benefits, stock-based compensation
and other personnel-related costs. Additional costs include non-personnel costs such as legal and professional fees, rent, audit fees and insurance costs.

Patents

The Company expenses external costs, such
as filing fees and associated attorney fees, incurred to obtain issued patents and patent applications pending. The Company also expenses costs associated with maintaining and defending patents subsequent to their issuance in the period incurred.

Income Taxes

Income taxes have been
determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts

F-13

LB Pharmaceuticals Inc

Notes to Financial Statements

of assets and liabilities are recovered or paid. Deferred taxes result from differences between the financial statement and tax bases of LB’s assets and liabilities and are adjusted for
changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether a valuation allowance is
required often requires significant judgment.

Net Loss Per Share

The Company follows the two-class method when computing net loss per share, as the Company has issued shares that meet
the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and
participation rights in und