Company: SCLXW
Filing Date: 2025-08-04
Form Type: S-1
Source: 0001193125-25-172703
Chunk: 558

Company: Scilex Holding Co
Filing Date: 2025-08-04
Form: S-1
Chunk 558
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 of the Initial Licensed Product solely in the Romeg U.S. Territory; and (3) pursuant to the amendment thereto, a license, with the right to (a) sublicense under the know-howand, if any, patents existing worldwide other than the Romeg U.S. Territory (the “Romeg Ex-U.S.Territory”), as specified therein, to develop, manufacture and commercialize Licensed Products in the Romeg Ex-U.S.Territory and (b) use the Licensed Trademark in connection with the commercialization of the Licensed Products in the Romeg Ex-U.S.Territory. The Initial Licensed Product, GLOPERBA, was approved and made available in the United States in 2020. As consideration for the license under the Romeg License Agreement, the Company agreed to pay Romeg (1) an up-frontlicense fee of $ 2.0million, (2) upon the Company’s achievement of certain net sales milestones, certain milestone payments in the aggregate amount of up to $ 13.0million, (3) certain royalties in the mid-singledigit percentage based on annual net sales of the Licensed Products attributable to sales of the Licensed Products occurring in the Romeg U.S. Territory during the Romeg U.S. Royalty Term, with a quarterly minimum royalty of $ 150,000, and (4) pursuant to the amendment thereto, (a) certain royalties at rates in the low-singledigit F-68 percentage, based on annual net sales of the Licensed Products attributable to sales of License Products in the Romeg Ex-U.S.Territory during the Romeg Ex-U.S.Territory Royalty Term and (b) a one-time, non-refundable, non-creditablepayment of $ 700,000. Pursuant to the amendment agreement, we also transferred to Romeg 22,267shares of Common Stock. In connection with the Romeg License Agreement, the Company recorded an intangible asset for acquired licenses of $ 5.7million, which is comprised of the upfront license fee of $ 2.0million and deferred consideration of $ 3.7million that is the present value of the future minimum royalty payments and immaterial transaction costs. For each of the three months ended March 31, 2025 and 2024, the Company made royalty payments in the amount of $ 0.2million. Nocontingent consideration was recognized as a liability or included in the fair value of the