Company: LBRX
Filing Date: 2025-08-22
Form Type: S-1
Source: 0001193125-25-186467
Chunk: 366

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-08-22
Form: S-1
Chunk 366
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 Offer”) in which the Company offered participants in the Series A Offering to invest
in the Series B Offering. During the Rights Offer, for each Class A Warrant holder that invested in the Series B Offering, the Class A Warrant holder received the right to convert its Class A Warrants into the number of shares of
common stock issuable upon exercise of the Class A Warrants, at no cost and for an exercise price of zero ($0.00) per share. On May 3, 2022, the Company settled the warrant liability and converted 0.2 million Class A Warrants to
common stock. The difference in fair value based on the change in the exercise price of the warrants of less than $0.01 million was recorded to gain (loss) on change in fair value of derivative instruments in the accompanying statement of
operations.

Pursuant to the anti-dilution terms contained in the Class A Warrants, any Class A Warrant holder who chose not to participate in
the Rights Offer received a reduction in the exercise price of the Class A Warrants from $2.30 per share to $2.27 per share, calculated based on the amount of common stock issued upon conversion of the Class A Warrants in the Rights Offer.

The Class B Warrants issued as part of the Series A Offering remain outstanding and were not impacted by the Class A Warrant conversions.

In August 2023, as part of the Series C Offering, the Company modified the outstanding Class A Warrants, Class B Warrants and Class B-1 Warrants reducing the exercise price to $0.01. The Company recorded a gain on the change in fair value of $0.8 million to gain (loss) on change in fair value of derivative instruments in the accompanying
statement of operations for the year ended December 31, 2023.

Additionally, the Company issued 0.1 million new warrants to the Series B
preferred stockholders at a strike price of $1.50 per share (“New Series B Warrants”), allowing the Series B preferred stockholders to purchase common stock in an amount equal to 33.33% of their current Series B Preferred holdings. The
New Series B Warrants were immediately exercisable and expire five years after issuance. The New Series B Warrants were issued as an incentive for the Series B stockholders to consent to the Series C Offering. The issuance of the New Series B
Warrants was considered an inducement offer under ASC 470, Debt