Company: SCYX
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000950170-25-038044
Chunk: 167

Company: SCYNEXIS INC
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1B
Chunk 167
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 Company uses the binomial lattice valuation model to value the Level 3 derivative liabilities at inception and on subsequent valuation dates.  This model incorporates transaction details such as the Company’s stock price, contractual terms, dividend yield, risk-free rate, historical volatility, credit rating, market credit spread, and estimated effective yield.  The unobservable inputs associated with the Level 3 derivative liability are adjusted equity volatility, market credit spread, and estimated yield.  As of December 31, 2023, these inputs were 99.6%, 1,159 basis points, and 16.3%, respectively.  The senior convertible notes are initially fair valued using the binomial lattice model and with the straight debt fair value calculated using the discounted cash flow method.  The residual difference represents the fair value of the embedded derivative liability and the fair value of the embedded derivative liabilities are reassessed using the binomial lattice valuation model on a quarterly basis.  A reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows (in thousands):

84

        Warrant Liabilities

        Balance – January 1, 2024

        $
        21,810

        Gain adjustment to fair value

        (13,812
        )

        Balance – December 31, 2024

        $
        7,998

        Derivative Liability

        Balance – January 1, 2024

        $
        196

        Gain adjustment to fair value

        (196
        )

        Balance – December 31, 2024

        $
        —

13.Employee Benefit Plan The Company has a 401(k) retirement plan, which covers all U.S. employees scheduled for and working more than 20 hours per week. The Company may provide a discretionary match with a maximum amount of 50% of the first 6% of eligible participant’s compensation, which vests ratably over four years. Contributions under the plan were approximately $0.2 million for both the years ended December 31, 2024 and 2023.

14.SegmentsThe Company has one reportable segment which is drug development.  The Company primarily derives revenue from its licensing of developed drugs in difficult-to-treat and drug-resistant infections and manages the business activities on a consolidated basis.  The Company’s CODM is the Chief Executive Officer. The CODM assesses performance for the drug development segment and decides how to allocate resources