Company: SCLXW
Filing Date: 2025-08-04
Form Type: S-1
Source: 0001193125-25-172703
Chunk: 551

Company: Scilex Holding Co
Filing Date: 2025-08-04
Form: S-1
Chunk 551
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.1million and $ 1.2million, respectively. As of March 31, 2025 and December 31, 2024, allowances for prompt payment discounts were $ 0.4million and $ 0.6million, respectively. The Oramed Note and Tranche B Notes The Company has elected the fair value option to account for the Tranche B Notes (as defined in Note 2 “ Liquidity and Going Concern” below) and the Oramed Note (as defined in Note 4 “ Fair Value Measurements” below) that were issued in October 2024 and September 2023, respectively, as discussed further in Note 7. The Company recorded these financial instruments at fair value upon issuance with changes in fair value recorded as change in fair value of debt and liability instruments in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk, if any, which are recorded as a component of other comprehensive income. Interest expense related to these financial instruments is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to these financial instruments were expensed as incurred. As of March 31, 2025 and December 31, 2024, the weighted-average interest rates for the short-term loans, including these financial instruments, were 8.35% and 6.67%, respectively. Treasury Stock The Company uses the cost method to account for repurchases of its stock. In the computation of net (loss) income per share, treasury shares are not included as part of the outstanding shares. Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures, which will require additional expense disclosures for all public entities. The amendments require that at each interim and annual reporting period, an entity will disclose certain disaggregated expenses included in each relevant expense caption, as well as the total amount of selling expenses and, in annual periods, an entity’s definition of selling expenses. ASU 2024-03is effective for annual reporting periods beginning with the fiscal year ending December 31, 2027, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the incremental disclosures that will be required in its consolidated financial statements. In November 2024, the FASB