Company: LBRX
Filing Date: 2025-07-23
Form Type: DRS/A
Source: 0000950123-25-006557
Chunk: 348

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-07-23
Form: DRS/A
Chunk 348
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 occurrence of certain deemed liquidation events, the majority of the holders can opt to redeem the shares at the liquidation preference and these events,
including a merger, acquisition or sale of substantially all of the assets, are considered not solely within the Company’s control. The Company has not adjusted the carrying values of the redeemable convertible preferred stock to its redemption
value because it is not considered redeemable as of December 31, 2024 and 2023.

Research and Development

Research and development costs include expenditures in connection with clinical trials, employee cash and stock-based compensation, regulatory and scientific
consulting fees, contract research for preclinical studies, drug formulation, supply and handling and data collection. Advance payments for goods or services to be received in the future for use in research and development activities are recorded as
prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed.

The value of goods and services
received from the contract research organization (“CRO”) and other third parties are accrued each reporting period based on estimates of the level of services performed and progress in the period when invoices have not been received from
such organizations. When evaluating the adequacy of the accrued liabilities, the progress of the studies or clinical trials are analyzed, including the phase or completion of events, invoices received and contracted costs. Significant judgments and
estimates are made in determining the accrued balances at the end of any reporting period. Accruals are adjusted as actual costs become known or as additional information becomes available.

General and Administrative

General and
administrative costs include expenditures that are not directly related to research and development. General and administrative costs include costs for support and administrative functions including salaries and benefits, stock-based compensation
and other personnel-related costs. Additional costs include non-personnel costs such as legal and professional fees, rent, audit fees and insurance costs.

Patents

The Company expenses external costs, such
as filing fees and associated attorney fees, incurred to obtain issued patents and patent applications pending. The Company also expenses costs associated with maintaining and defending patents subsequent to their issuance in the period incurred.

Income Taxes

Income taxes have been
determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts

F-13

LB Pharmaceuticals Inc

Notes to Financial Statements

of assets and liabilities are recovered or paid. Deferred taxes result from differences between the financial statement and tax bases of LB’s assets and liabilities and