Company: SCLXW
Filing Date: 2025-01-17
Form Type: 10-Q
Source: 0000950170-25-006755
Chunk: 291

Company: Scilex Holding Co
Filing Date: 2025-01-17
Form: 10-Q
Item: Item 8
Chunk 291
---
 not exceed 4,476,601, which was increased from 2,875,759 shares as a result of automatic annual increase on January 1, 2024. 

 29

Total stock-based compensation recorded as operating expense for the ESPP was $74.2 thousand and $196.3 thousand for the three and nine months ended September 30, 2024, respectively and nil for the three and nine months ended September 30, 2023, respectively. As of September 30, 2024, there were 167,369 shares of Common Stock issued under the ESPP. Valuation Assumptions The Company calculates the fair value of stock options granted to employees and nonemployees and shares issued under ESPP using the Black-Scholes option pricing method. The Black-Scholes option pricing method requires the use of subjective assumptions. The following assumptions were used in the Black-Scholes option pricing model to estimate stock-based compensation on the date of grant for stock options granted and ESPP shares issued: 

        Nine Months EndedSeptember 30, 2024

        Stock options:

        Expected dividend yield
         
        0.00%

        Expected volatility
         
        72% - 97%

        Risk-free interest rate
         
        3.79% - 4.44%

        Term of options (in years)
         
        5.5 - 6.3

        Employee stock purchase plan:

        Expected dividend yield
         
        0.00%

        Expected volatility
         
        129.30%

        Risk-free interest rate
         
        5.39%

        Expected life (in years)
         
        0.50
       
       Semnur 2024 Stock Option Plan  Concurrent with the signing of the Semnur Merger Agreement, the Board, the Company (as the sole stockholder of Semnur) and the Board of Directors of Semnur approved the 2024 Stock Option Plan (“Semnur 2024 Plan”). Under the Semnur 2024 Plan, 40,000,000 shares of Semnur Common Stock were reserved for future issuance and Nonstatutory Stock Options (“NSOs”) to purchase the same amount of Semnur Common Stock were granted to certain executive officers of Semnur. The NSOs were granted on August 30, 2024 and expire on August 30, 203