Company: SCLXW
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0000950170-25-071914
Chunk: 40

Company: Scilex Holding Co
Filing Date: 2025-05-15
Form: 424B3
Chunk 40
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, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. At issuance, the Company concluded that certain features of the Oramed Note would be considered derivatives that would require bifurcation. In lieu of bifurcating such features, the Company has elected the fair value option for this financial instrument 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 March 31, 2025 and December 31, 2024, the fair value of the Oramed Note was $15.0 million and $12.2 million, respectively, which is classified as debt, current in the consolidated balance sheets. The following table provides a summary of the changes in the balance and the estimated fair value of the Oramed Note (in thousands):

|                                                                                             | March 31, 
 2025      |        |
|:--------------------------------------------------------------------------------------------|:----------|-------:|
| Ending Balance as of December 31, 2024                                                      | $         | 12,161 |
| Change in fair value of Oramed Note – recorded in the consolidated statements of operations |           |  2,801 |
| Ending Balance as of March 31, 2025                                                         | $         | 14,962 |

Tranche B Notes On October 8, 2024, the Company entered into the Tranche B Securities Purchase Agreement with the Tranche B Investors and Oramed to refinance a portion of the Oramed Note and pay off certain other indebtedness of the

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Company. Pursuant to the Tranche B Securities Purchase Agreement, the Company agreed to issue and sell, in a registered offering by the Company directly to the Tranche B Noteholders: (i) the Tranche B Notes, which notes will mature on the two-year anniversary of the issuance date and will be convertible into shares of Common Stock at a current conversion price equal to $36.40 per share and (ii) warrants (the “October 2024 Noteholder Warrants”) to purchase up to 214,284 shares of Common Stock directly to the Tranche B Noteholders.

In exchange for the issuance of the Tranche B Notes to the Tranche B Investors, the Company has received an aggregate amount of $22,500,000 in cash, excluding fees and expenses payable by the Company. In consideration for the Tranche B Notes issued to Oramed