Company: LBRX
Filing Date: 2025-07-23
Form Type: DRS/A
Source: 0000950123-25-006557
Chunk: 353

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-07-23
Form: DRS/A
Chunk 353
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| Discount rate                     |     |                  |      31.50 | % |

Warrants In 2018 and 2019, the Company issued warrants to investors in connection with its private placement of Series A convertible preferred stock “A and B Warrants” (as defined in Note 8 Redeemable Convertible Preferred Stock and Equity). Pursuant to the terms of the A and B Warrants, the Company could be required to adjust the exercise price upon an adjustment of the price or exercise price of the Company’s existing stock or stock options. In May 2022, the Company issued the Series B-1 Warrants (as defined below) to investors in connection with the Series B convertible preferred stock financing (the “Series B Offering”). In August 2023, the Company issued the New Series B Warrants (as defined below) to the investors in the Series B Offering as an inducement to consent to the Series C preferred stock financing (the “Series C Offering”). The Company issued warrants to investors in connection with equity financings. The warrants are required to be measured at fair value and reported as a liability in the accompanying balance sheets. The warrants are valued at each reporting date using the Black-Scholes model with any changes in fair value recorded in the accompanying statements of operations. The valuation of the warrants is considered Level 3 in the fair value hierarchy as the assumptions in the valuation that are both significant to the fair value measurement and unobservable. See Note 8 Redeemable Convertible Preferred Stock and Equityfor additional information. For the years ended December 31, 2024 and 2023, the Company recorded a loss on the change in the fair value of the Level 3 warrant liability of $0.9 million and $0.3 million, respectively, in the accompanying statements of operations. F-17

LB Pharmaceuticals Inc Notes to Financial Statements The following are the assumptions used in the Black-Scholes valuation model in order to determine the fair value of the derivative liabilities for the warrant liabilities for the years ended December 31, 2024 and 2023:

|                                   |     | August 28, 
 2023       |              |   |     | December 31, 
 2023         |              |   |     | December 31, 
 2024         |              |   |
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