Company: SCLXW
Filing Date: 2025-12-29
Form Type: 424B3
Source: 0001193125-25-335429
Chunk: 630

Company: Scilex Holding Co
Filing Date: 2025-12-29
Form: 424B3
Chunk 630
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 before the Semnur Business Combination and also controls Semnur following the Semnur Business Combination, Denali was treated as the
“acquired” company for financial reporting purposes. Accordingly, the Semnur Business Combination was treated as the equivalent of Semnur issuing stock for the net assets of Denali, accompanied by a recapitalization whereby the net
assets of Denali will be stated at historical cost and no goodwill or other intangible assets are recorded.

Due to the changes in ownership structure
related to the above transactions, the Company reevaluated Semnur under the VIE model in accordance with ASC 810. The Company concluded that Semnur is a VIE because it lacked sufficient equity at risk to finance its activities without additional
subordinated support. Due to the Company’s power to direct key activities through its majority board representation and its significant economic exposure, it was determined that the Company was the primary beneficiary of Semnur. As a result,
the Company continues to consolidate Semnur and records the interest that the Company does not own as noncontrolling interest in the condensed consolidated financial statements.

The Company’s condensed consolidated balance sheet at September 30, 2025 includes balances for Semnur of $0.1 million for cash and cash
equivalents, $0.7 million property and equipment, net, $4.3 million accounts payable, $1.3 million accrued expenses, and $4.5 million note payable.

12. Commitments and Contingencies

Product Development Agreement

In February 2013, Scilex Pharma became a party to a product development agreement (as amended, the “Product
Development Agreement”) with Itochu and Oishi (together, the “Developers”), pursuant to which the Developers will manufacture and supply lidocaine tape products, including ZTlido and SP-103
(the “Products”), for Scilex Pharma. The Developers initially developed and have intellectual property rights relating to the Products. Pursuant to the Product Development Agreement, Scilex Pharma acquired an exclusive right to develop
and commercialize the Products worldwide except for Japan. The Developers are responsible for sourcing and supplying lidocaine for development and commercialization purposes.

Pursuant to the Product Development Agreement, Scilex Pharma is required to make aggregate royalty payments between 25% and 35% to the Developers based on net
profits. Scilex Pharma made royalty payments in the amount of $2.8 million for each of the