Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119831
Chunk: 527

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 527
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 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. 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, they would affect the effective tax rate, however given the full valuation allowance in the jurisdiction in which the unrecognized tax benefits relate to, the impact on the effective tax rate would be nil. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. No interest or penalties have been recognized as of and for the years ended December 31, 2024 and 2023. The Company believes that no material amount of the liabilities for uncertain tax positions are expected to reverse within 12 months of December 31, 2024. F-52

13. Net Loss Per Share The following table sets forth the reconciliation of basic and diluted loss per share for the years ended December 31,