Company: SCLXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047800
Chunk: 358

Company: Scilex Holding Co
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 358
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        2024

        2023

        Gross unrecognized tax benefits at the beginning of the year
         
        $
        1,071

        $
        408

        Increase related to prior year tax positions

        —

        536

        Increase related to current year tax positions

        127

        127

        Gross unrecognized tax benefits at the end of the year
         
        $
        1,198

        $
        1,071

       As of December 31, 2024 and 2023, the Company had $1.2 million and $1.1 million in total unrecognized tax benefits, respectively, which have been reflected as a reduction in deferred tax assets. If these were to be recognized, they would affect the effective tax rate, however given the full valuation allowance in the jurisdiction in which the unrecognized tax benefits relate to, the impact on the effective tax rate would be nil. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. No interest or penalties have been recognized as of and for the years ended December 31, 2024 and 2023. The Company believes that no material amount of the liabilities for uncertain tax positions are expected to reverse within 12 months of December 31, 2024.

13. Net Loss Per Share The following table sets forth the reconciliation of basic and diluted loss per share for the years ended December 31, 2024 and 2023 (in thousands except per share data): 

        Year Ended December 31,

        2024

        2023

        Net loss
         
        $
        (72,807
        )
         
        $
        (114,331
        )

        Premium on redemption of Series A Preferred Stock

        —

        (52,645
        )

        Net loss for basic loss per share available to common stockholders
         
        $
        (72,807
        )
         
        $
        (166,976
        )

        Reversal of mark-to-market adjustment for liability classified warrants

        (8,895
        )

        —

        Net loss for diluted loss per share available to common stockholders
         
        $
        (81,702
        )
         
        $
        (166,976
        )

        Weighted average number of shares outstanding

        124,636

        130,298

        Weighted average common stock warrants exerc