Company: SCYX
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000950170-25-038044
Chunk: 151

Company: SCYNEXIS INC
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1B
Chunk 151
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 values of these warrants have been determined using the Black-Scholes valuation model, and the changes in the fair value are recorded in the accompanying consolidated statements of operations.  The outstanding warrants associated with the April 2022 Public Offering meet the definition of a derivative pursuant to ASC 815, Derivatives and Hedging, and do not meet the derivative scope exception given the warrants do not qualify under the indexation guidance.  As a result, the April 2022 Public Offering warrants were initially recognized as liabilities and measured at fair value using the Black-Scholes valuation model.  During the year ended December 31, 2024 and 2023, the Company recognized a gain of $13.8 million and a loss of $3.2 million, respectively, due to the change in fair value of the warrant liabilities.  As of December 31, 2024 and 2023, the fair value of the warrant liabilities were $13.7 million and $21.8 million, respectively.Warrant Associated with Danforth AdvisorsPursuant to a consulting agreement with Danforth Advisors (“Danforth”) entered into in November 2021, the Company issued to Danforth a warrant to purchase 50,000 shares of the Company’s common stock at an exercise price of $5.50 per share. The warrant will expire five years from the date of the grant.

9.RevenueProduct Revenue, NetNet product revenue was zero and $1.0 million for the years ended December 31, 2024 and 2023, respectively.  Products are sold primarily to wholesalers and specialty pharmacies.  Revenue is reduced from wholesaler list price at the time of recognition for expected chargebacks, rebates, discounts, incentives, and returns, which are referred to as gross to net (“GTN”) adjustments. These reductions are currently attributed to various commercial arrangements.  Chargebacks and discounts are recognized as a reduction in accounts receivable or as accrued expenses based on their nature and settled through the issuance of credits to the customer or through cash payments to the customer, respectively.  All other returns, rebates, and incentives are reflected as accrued expenses and settled through cash payments to the customer.  Three wholesalers comprised 44%, 28%, and 26% of the Company’s gross revenue for the year ended December 31, 2023. 

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The following table summarizes activity in each of the Company’s product revenue provision and allowance categories as of December 31, 2024 and 202