Company: SCLXW
Filing Date: 2025-01-17
Form Type: 10-Q
Source: 0000950170-25-006755
Chunk: 122

Company: Scilex Holding Co
Filing Date: 2025-01-17
Form: 10-Q
Item: Item 1
Chunk 122
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eavor”), See Note 4 titled “Fair Value Measurements” to our unaudited condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.

Interest Expense, Net

Interest expense, net consists of interest related to the loans in an aggregate principal amount of up to $30.0 million (the “Revolving Facility”) made available by eCapital Healthcare Corp. pursuant to a Credit and Security Agreement (the “eCapital Credit Agreement”) that Scilex Pharma entered into on June 27, 2023.

 46

Loss on Foreign Currency Exchange

Loss on foreign currency exchange relates to foreign exchange losses on payments made to our foreign supplier, Itochu Chemical Frontier Corporation (“Itochu”), a manufacturer and supplier of lidocaine tape products, including ZTlido and SP-103. 

Results of Operations For the Three Months Ended September 30, 2024 and 2023

The following tables summarize our results of operations for the three months ended September 30, 2024 and 2023 (in thousands):

    Three Months Ended September 30,

    2024

    2023

    Changes

    Statements of Operations Data:

    Net revenue
     
    $
    14,436

    $
    10,117

    $
    4,319

    Net operating costs and expenses:

    Cost of revenue

    3,768

    3,392

    376

    Research and development

    2,349

    4,072

    (1,723
    )

    Selling, general and administrative

    29,734

    40,431

    (10,697
    )

    Intangible amortization

    1,002

    1,027

    (25
    )

    Legal settlements

    (2,500
    )

    —

    (2,500
    )

    Total net operating costs and expenses

    34,353

    48,922

    (14,569
    )

    Loss from operations

    (19,917
    )

    (38,805
    )

    18,888

    Other (income) expense, net:

    Gain on derivative liability

    (18,108
    )

    (4,245
    )

    (13,863
    )

    Change in fair value of debt and liability instruments

    1,957