Company: LBRX
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0001193125-25-197877
Chunk: 170

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 170
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 sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss in other expense, net, on the statements of operations. The fair value of the warrants was estimated using the Black-Scholes option pricing model, which requires the use of highly subjective
and unobservable assumptions to determine the fair value of the warrants, including the fair value of common stock, expected term, expected volatility, risk-free interest rate and expected dividend yield.

Option Repricing

In September
2025, our board of directors approved the repricing of stock options previously granted to current executive officers, employees and directors with per-share exercise prices above the initial price per share to the public in this offering, or the
Option Repricing. Assuming an initial price per share to the public in this offering of $15.00 per share, which is the midpoint of the price range set forth on the cover page of the prospectus, (i) upon the execution of the underwriting agreement
related to this offering, stock options to purchase approximately 406,998 shares of our common stock will be automatically repriced to an exercise price per share equal to the initial price per share to the public in this offering and (ii) we would
incur additional compensation expense of approximately $1.7 million in the aggregate, recognized over the remaining service period of the affected options, or through 2029.

The actual amount of total additional compensation expense resulting from the Option Repricing will be determined at the pricing of this
offering by comparing the estimated fair market value of the stock options, using the Black-Scholes option-pricing model, immediately before and immediately after the Option Repricing. The estimate of total additional compensation expense set forth
above is subject to the actual initial price per share to the public in this offering as well as other assumptions used by the Black-Scholes option-pricing model, including expected volatility and the risk-free interest rate.

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In addition, on the effective date of the registration statement of which this
prospectus forms a part, assuming we issue 16,666,667 shares in connection with this offering at an assumed price of $15.00 per share, we will issue to our current executive officers, employees and directors stock options to purchase an aggregate of
1,618,452 shares of our common stock under the 2025 Plan, subject to continued service through such grant date. Based on an assumed exercise price of $15.00 per share, which is the