Company: SCLXW
Filing Date: 2025-01-17
Form Type: 424B3
Source: 0000950170-25-006774
Chunk: 24

Company: Scilex Holding Co
Filing Date: 2025-01-17
Form: 424B3
Chunk 24
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 India (“DRL”), dated August 3, 2021 (the “DRL APA”), including an irrevocable, royalty-free, exclusive license to know-how and patents of DRL related to ELYXYB that is necessary or used to exploit ELYXYB in the ELYXYB Territory. No cash consideration was or will be payable to the Sellers for such acquisition; however, the obligations under the DRL APA that were assumed by the Company include contingent sales and regulatory milestone payments and sales royalties. The Company is also obligated to make quarterly royalty payments to DRL on net sales of ELYXYB in the ELYXYB Territory. In April 2023, the Company launched ELYXYB in the U.S. As of September 30, 2024 and December 31, 2023, the Company had ending balances of accrued royalty payables of $0.1 million and $5.0 thousand, respectively. As of September 30, 2024, no sales or regulatory milestone payments had been accrued as there were no potential milestones yet considered probable of achievement.

4. Fair Value Measurements

The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the level of inputs used in such measurements (in thousands):

|                                          |     | September 30, 2024 |        |     |               |   |     |                  |   |     |                                           |        |
|:-----------------------------------------|:----|:-------------------|-------:|:----|:--------------|:--|:----|:-----------------|:--|:----|:------------------------------------------|-------:|
|                                          |     | Balance            |        |     | Quoted Prices 
 in Active     
 Markets       
 (Level 1)     |   |     | Significant      
 Other            
 Observable       
 Inputs (Level 2) |   |     | Significant Unobservable Inputs (Level 3) |        |
| Liabilities                              |     |                    |        |     |               |   |     |                  |   |     |                                           |        |
| Oramed Note                              |     | $                  | 69,946 |     | $             | — |     | $                | — |     | $                                         | 69,946 |
| FSF Deposit                              |     |                    | 14,690 |     |               | — |     |                  | — |     |                                           | 14,690 |
|