Company: SCLXW
Filing Date: 2025-08-04
Form Type: S-1
Source: 0001193125-25-172703
Chunk: 549

Company: Scilex Holding Co
Filing Date: 2025-08-04
Form: S-1
Chunk 549
---
 and certain assumptions used in estimating stock-based compensation. Management believes that these estimates are reasonable; however, actual results may differ from these estimates. Customer and Supplier Concentration Risk The Company had three customers during the three months ended March 31, 2025 and 2024, each of which individually generated 10% or more of the Company’s total revenue. These customers accounted for 99% and 85% of the Company’s revenue for the three months ended March 31, 2025 and 2024, respectively, and individually ranging from 14% to 47% and 24% to 31%, respectively. As of March 31, 2025 and 2024, these customers represented 89% and 94% of the Company’s outstanding accounts receivable, individually ranging F-63

between 18% and 37%, and 25% and 36% for respective periods. Additionally, during the three months ended March 31, 2025 and 2024, the Company purchased ZTlido, ELYXYB and GLOPERBA inventories from its sole suppliers, Itochu, Contract Pharmaceuticals Ltd. Canada (“CPL”) and Ferndale Laboratories, Inc., respectively. This exposes the Company to concentration of customer and supplier risk. The Company monitors the financial condition of its customers, limits its credit exposure by setting credit limits, and has not experienced any credit losses during the three months ended March 31, 2025 and 2024. Significant Accounting Policies There have been no significant changes to the accounting policies during the three months ended March 31, 2025, as compared to the significant accounting policies described in Note 1 of the Notes to Consolidated Financial Statements in the Company’s audited consolidated financial statements included in the Annual Report on Form 10-K. Fair Value Measurements Financial assets and liabilities are recorded at fair value on a recurring basis in the condensed consolidated balance sheets. The carrying values of the Company’s financial assets and liabilities, including cash and cash equivalents, restricted cash, prepaid and other current assets, accounts payable and accrued expenses approximate to their fair value due to the short-term nature of these instruments. The valuation of the derivative warrant liability for the Private Warrants, the February 2024 BDO Firm Warrants, the Deposit Warrant, the April RDO Warrants, the October 2024 Noteholder Warrants and the December 2024 RDO Common Warrants (each as defined below) is outlined in Note