Company: SCLXW
Filing Date: 2025-10-28
Form Type: PRE 14A
Source: 0001193125-25-253884
Chunk: 17

Company: Scilex Holding Co
Filing Date: 2025-10-28
Form: PRE 14A
Chunk 17
---
 Holding Period, we will be entitled to a federal income tax deduction equal to the amount of ordinary income the participant recognizes.

Non-statutoryStock Options. A participant will not recognize any taxable income on the grant of a non-statutory stock option. On the exercise of a non-statutory stock option, the participant will recognize as ordinary income the excess of the fair market value of the common stock acquired over the exercise price. A participant’s tax basis in our Common
Stock is the amount paid plus any amounts included in income on exercise. The participant’s holding period for the stock begins on acquisition of the shares. Any gain or loss that a participant realizes on a subsequent disposition of our
Common Stock acquired on the exercise of a non-statutory stock

10

option generally will be treated as long-term or short-term capital gain or loss, depending on the length of time the participant held such shares. The amount of the gain (or loss) will equal the amount by which the amount realized on the subsequent disposition exceeds (or is less than) the participant’s tax basis in his or her shares. A participant will receive different tax treatment if the exercise price is paid by delivery of common stock the participant already owns. The exercise of a non-statutorystock option will entitle us to claim a federal income tax deduction equal to the amount of ordinary income the participant recognizes. If the participant is an employee or a former employee, that ordinary income will constitute wages subject to withholding and employment taxes. Accounting Treatment of the Option Repricing Under Financial Accounting Standards Codification Topic 718, the Company will recognize any incremental compensation cost of the Eligible Options subject to the Option Repricing. The incremental compensation cost will be measured as the excess, if any, of the fair value of the Eligible Options immediately following the Option Repricing over the fair value of the Eligible Options immediately prior to the Option Repricing. Outstanding Eligible Options The following table summarizes the outstanding Eligible Options (i.e., those options granted under the 2022 Plan with an exercise price of $282.80 per share) for the Option Repricing held by our current named executive officers (i.e., Dr. Ji and Mr. Ma), all current executive officers as a group, all current non-employeedirectors as a group and all other employees, respectively.

| Name                                                                                     
 Name and Position                                                                        |     | Number of        
 Eligible Options 
 Outstanding      |         |     | Current Exercise  
 Price of Eligible 
 Options           |        |
|:-----------------------------------------------------------------------------------------