Company: SCLXW
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001193125-25-115095
Chunk: 536

Company: Scilex Holding Co
Filing Date: 2025-05-07
Form: POS AM
Chunk 536
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 operating loss carryforwards begin to expire in 2033 for both federal and state. As of December 31, 2024, the Company had a total of $ 313.5 million of federal net operating losses that have an indefinite life and will not expire, and had federal research and development income tax credits of $ 3.7 million which will begin to expire in 2034 . As of December 31, 2024, the Company had California research and development income tax credits of $ 2.2 million that have an indefinite life and will not expire.

Internal Revenue Code Section 382 rules apply to limit a corporation’s ability to utilize existing net operating loss and tax credit carryforwards once the corporation experiences an ownership change as defined in Section 382. For the years ended December 31, 2024 and 2023, there was no impact of such limitations on the Company’s income tax provision.

<div align='center'>F-50</div>

The Company is subject to taxation in U.S. federal and state tax jurisdictions. All of the Company’s tax years will remain open for three years for examination by the federal and state tax authorities from the date of utilizations of net operating loss. There are no active tax compliance audits as of December 31, 2024.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2024 and 2023 (in thousands):

|                                                              |     |   |  2024 |     |   |  2023 |
|:-------------------------------------------------------------|:----|:--|------:|:----|:--|------:|
| Gross unrecognized tax benefits at the beginning of the year |     | $ | 1,071 |     | $ |   408 |
| Increase related to prior year tax positions                 |     |   |     — |     |   |   536 |
| Increase related to current year tax positions               |     |   |   127 |     |   |   127 |
| Gross unrecognized tax benefits at the end of the year       |     | $ | 1,198 |     | $ | 1,071 |

As of December 31, 2024 and 2023, the Company had $ 1.2 million and $ 1.1 million in total unrecognized tax benefits, respectively, which have been reflected as a reduction in deferred tax assets. If these were to be recognized,