Company: SCLXW
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001193125-25-115088
Chunk: 415

Company: Scilex Holding Co
Filing Date: 2025-05-07
Form: POS AM
Chunk 415
---
 aspect of state, local or non-U.S.taxation, or any U.S. federal taxes other than income taxes (such as gift and estate taxes). THIS SUMMARY DOES NOT PURPORT TO BE A COMPREHENSIVE ANALYSIS OR DESCRIPTION OF ALL POTENTIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK. IN ADDITION, THE U.S. FEDERAL INCOME TAX TREATMENT OF THE BENEFICIAL OWNERS OF OUR COMMON STOCK MAY BE AFFECTED BY MATTERS NOT DISCUSSED HEREIN AND DEPENDS IN SOME INSTANCES ON DETERMINATIONS OF FACT AND INTERPRETATIONS OF COMPLEX PROVISIONS OF U.S. FEDERAL INCOME TAX LAW FOR WHICH NO CLEAR PRECEDENT OR AUTHORITY MAY BE AVAILABLE. HOLDERS OF OUR COMMON STOCK SHOULD CONSULT WITH THEIR TAX ADVISORS REGARDING THE PARTICULAR TAX CONSEQUENCES TO THEM OF THE OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK INCLUDING THE APPLICABILITY AND EFFECTS OF U.S. FEDERAL, STATE, LOCAL, AND OTHER TAX LAWS. Characterization of the Penny Warrants for Tax Purposes Although the characterization of the Penny Warrants for U.S. federal income tax purposes is not entirely clear, because the exercise price of the Penny Warrants is a nominal amount, we expect to treat the Penny Warrants as stock for U.S. federal income tax purposes. Accordingly, no gain or loss should be recognized upon the exercise of the Penny Warrants (other than with respect to cash paid in lieu of a fractional share) and, upon exercise, the 262

holding period of the Penny Warrants should carry over to the share received. Similarly, the tax basis of the Penny Warrants should carry over to the share received upon exercise, increased by the exercise price. The following discussion assumes the Penny Warrants are treated as our stock.

Our position with respect to the U.S. federal income tax characterization of the Penny Warrants is not binding on the IRS and the IRS may treat the Penny Warrants as warrants to acquire our common stock for U.S. federal income tax purposes and, if so, the amount and character of your gain with respect to an investment in the Penny Warrants could change. You should consult your tax advisor regarding the characterization of Penny Warrants for U.S. federal income tax purposes, and the consequences to you of an investment in the Penny Warrants based on your own particular facts and circumstances.

U