Company: SCLXW
Filing Date: 2025-12-16
Form Type: S-1
Source: 0001193125-25-319720
Chunk: 611

Company: Scilex Holding Co
Filing Date: 2025-12-16
Form: S-1
Chunk 611
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 set forth in the ZTlido Royalty Purchase Agreement, the aggregate purchase price for the ZTlido Purchased Receivables was $ 5.0 million (net of expenses of the ZTlido Royalty Purchasers). The ZTlido Royalty Investors paid to Scilex Pharma an aggregate amount equal to $ 2.5 million minus the expenses of the ZTlido Royalty Investors and Oramed paid to Scilex Pharma an amount equal to $ 2.5 million minus Oramed’s expenses (the amount so paid by the ZTlido Royalty Purchasers, collectively, the “ZTlido RPA Closing Payment”). Oramed’s portion of the purchase price was paid by exchanging a portion of the outstanding principal balance under the Oramed Note equivalent to its portion of the ZTlido RPA Closing Payment, which amount extinguished and reduced $ 2.5 million of the outstanding balance under the Oramed Note.

The ZTlido Royalty Purchase Agreement terminates six months following receipt by the ZTlido RPA Purchasers of all payments of the ZTlido Purchased Receivables to which each ZTlido RPA Purchaser is entitled during the period commencing on the closing date of the ZTlido Royalty Purchase Agreement and expiring on the tenth anniversary of such closing date.

The Company elected the fair value option for the ZTlido Royalty Purchase Agreement and records the changes in the fair value within the unaudited condensed consolidated statements of operations at the end of each reporting period. As of September 30, 2025 and December 31, 2024, the fair value of the ZTlido Royalty Purchase Agreement was $ 14.3million and $ 6.8 million, respectively, recorded as a purchased revenue liability on the consolidated balance sheets. The Company incurred $ 0.2 million of issuance costs in connection with the ZTlido Royalty Purchase Agreement, which were included in the consolidated statement of operations for the year ended December 31, 2024.**

The following table summarizes the purchased revenue liability activity related to ZTlido Royalty Purchase Agreement (in thousands):

|                                                     |     | September 30,2025 |        |   |
|:----------------------------------------------------|:----|:------------------|-------:|:--|
| Ending Balance as of December 31, 2024              |     | $