Company: LBRX
Filing Date: 2025-07-23
Form Type: DRS/A
Source: 0000950123-25-006557
Chunk: 372

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-07-23
Form: DRS/A
Chunk 372
---
 generally have the ability to review income tax returns for periods where the statute of limitations has previously expired and can subsequently adjust the NOL
carryforward or tax credit amounts.

13. Commitments and Contingencies

The Company has contracted with various consultants and third parties to assist in pre-clinical research and
development and clinical trials work for the Company’s leading drug compounds. The contracts are terminable at any time but obligate the Company to reimburse the providers for any time or costs incurred through the date of termination.

Funding Commitments

In September
2023, the Company entered into a work order with a third-party CRO to provide services with respect to the Company’s Phase 2 trial of LB-102. Minimum advances will be kept by the CRO throughout the
duration of the clinical trial. As of December 31, 2024 and 2023, the Company recorded approximately $0.4 million and $2.2 million, respectively, in advances to the CRO, recorded in prepaid expenses in the accompanying balance sheets.

The Company enters into contracts in the normal course of business with contract development and manufacturing organizations (“CDMOs”) and
other third parties for preclinical research studies and testing and manufacturing services, which are generally cancelable upon prior written notice. Payments due upon cancellation may consist of payments for services provided or expenses incurred,
including noncancelable obligations of our service providers, up to the date of cancellation, and may also include termination penalties. As of December 31, 2024 and 2023, the Company had no outstanding liabilities related to such items.

Contingencies

In the normal course of
business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business. The Company records accruals for such loss contingencies when it is probable that a liability will be incurred, and the amount
of loss can be reasonably estimated. The Company, in accordance with this guidance, does not recognize gain contingencies until realized. The Company is not a party to any litigation and does not have contingency reserves established for any
litigation liabilities as of December 31, 2024.

F-36

LB Pharmaceuticals Inc

Notes to Financial Statements

14. Related-Party Transactions

In 2020, the Company entered into an oral agreement with Rivopharm S.A. (“Rivopharm”), to develop an oral dose formulation of LB-102 for use in future human clinical trials. Piero Poli, a former