Company: SCLXW
Filing Date: 2025-12-16
Form Type: S-1
Source: 0001193125-25-319720
Chunk: 631

Company: Scilex Holding Co
Filing Date: 2025-12-16
Form: S-1
Chunk 631
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 the Company (the parent) to an entity under common control, they were recorded at their historical carrying value of $0 in the consolidated condensed financial statements. The KDS2010 license rights contributed by IPMC were recorded at 40% of their estimated fair value of $ 9.4million for $ 4.9million and immediately expensed as in-processresearch and development (“IPR&D”) in accordance with ASC 730, Research and Development, as the contributed IP had no alternative future use. A current liability of $ 1.1million was also recognized for the initial upfront payment due under the licensing arrangement (further discussed below). Additionally, the Company recorded $ 1.8million in additional paid-incapital as a capital contribution. For the three and nine months ended September 30, 2025, net loss from Scilex Bio attributable to the noncontrolling interest was $ 0.2million and $ 1.9million, respectively. As of September 30, 2025, Scilex Bio had not commenced revenue-generating operations and remains focused on early-stage development efforts for KDS2010. The Company will reassess its primary beneficiary status and the VIE conclusion for Scilex Bio upon the occurrence of any reconsideration events. In connection with the formation of Scilex Bio, on April 17, 2025, the entity entered into a license agreement with IPMC and NeuroBioGen Company (“NBG”), under which it obtained exclusive rights to develop and commercialize KDS2010 globally, except for Korea. Under the terms of the agreement, Scilex Bio may be required to make aggregate payments of up to KRW 6.5trillion (approximately $ 4.8billion) to NBG, consisting of an upfront fee of KRW 1.5billion (approximately $ 1.1million), and KRW 68.5billion (approximately $ 50.7million) contingent upon the achievement of specified development, regulatory and commercial milestones. Scilex Bio is also required to pay royalties equal to 5% of net sales of licensed products, payable quarterly until the expiration of the last-to-expirelicensed patent. Aggregate payments to NBG are capped at KRW 6.5trillion (approximately $ 4.8billion). As of September 30, 2025, only the first tranche of the upfront fee (KRW 1.5billion or approximately