Company: SCLXW
Filing Date: 2025-01-17
Form Type: 10-Q
Source: 0000950170-25-006755
Chunk: 58

Company: Scilex Holding Co
Filing Date: 2025-01-17
Form: 10-Q
Item: Item 1
Chunk 58
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 company incorporated under the laws of India (“DRL”), dated August 3, 2021 (the “DRL APA”), including an irrevocable, royalty-free, exclusive license to know-how and patents of DRL related to ELYXYB that is necessary or used to exploit ELYXYB in the ELYXYB Territory. No cash consideration was or will be payable to the Sellers for such acquisition; however, the obligations under the DRL APA that were assumed by the Company include contingent sales and regulatory milestone payments and sales royalties. The Company is also obligated to make quarterly royalty payments to DRL on net sales of ELYXYB in the ELYXYB Territory. In April 2023, the Company launched ELYXYB in the U.S. As of September 30, 2024 and December 31, 2023, the Company had ending balances of accrued royalty payables of $0.1 million and $5.0 thousand, respectively. As of September 30, 2024, no sales or regulatory milestone payments had been accrued as there were no potential milestones yet considered probable of achievement.

4. Fair Value Measurements The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the level of inputs used in such measurements (in thousands): 

        September 30, 2024

        Balance
         
        Quoted Pricesin ActiveMarkets(Level 1)

        SignificantOtherObservableInputs (Level 2)

        Significant Unobservable Inputs (Level 3)

        Liabilities

        Oramed Note
         
        $
        69,946
         
        $
        —

        $
        —

        $
        69,946

        FSF Deposit

        14,690

        —

        —

        14,690

        Derivative liabilities

        11,453

        —

        —

        11,453

        Other long-term liabilities

        155

        —

        —

        155

        Total liabilities measured at fair value
         
        $
        96,244
         
        $
        —

        $
        —

        $
        96,244

 12

        December 31, 2023

        Balance

        Quoted Pricesin ActiveMarkets(Level 1)

        SignificantOtherObservableInputs (Level 2)

        SignificantUnobservableInputs (Level 3)

        Liabilities

        Oramed Note