Company: SCLXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047800
Chunk: 316

Company: Scilex Holding Co
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 316
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 agreed to issue Common Stock to the Sponsor contingent upon and following the occurrence of the Effective Time. The Company accounted for this promise to issue shares at a future date as an equity classified instrument as it is indexed to the Company’s own stock and meets the conditions to be classified in equity under FASB ASC 815, Derivatives and Hedging. The Purchased Interests will convert automatically, on a one-for-one basis, into one New Semnur Common Share at the effective time of the Domestication pursuant to the terms of the Semnur Business Combination Agreement. The Company determined it does not have significant influence over Denali and accounted for the Purchased Interests as equity securities at the transaction price which consists of the $2,000,000 paid by the Company to the Sponsor and the value of the 300,000 shares of the Common Stock at the closing price of $1.15 per share on the Signing Date for a total of $2.3 million. The Company elected to subsequently measure the investment at cost less any impairment. As of December 31, 2024, the Company’s investment in the Purchased Interests had a balance of $2.3 million. No impairment loss was recognized during the year ended December 31, 2024. 

 F-25

Property and Equipment, Net Property and equipment, net, consists of the following (in thousands): 

        December 31,

        December 31,

        2024

        2023

        Construction in progress
         
        $
        689

        $
        689

        Furniture

        17

        5

        Computers and equipment

        16

        36

        Leasehold improvements

        50

        50

        Property and equipment, gross

        772

        780

        Less: Accumulated depreciation

        (64
        )

        (58
        )

        Property and equipment, net
         
        $
        708

        $
        722

       The Company recognized depreciation expense of $14.0 thousand and $40.0 thousand for the years ended December 31, 2024 and 2023, respectively. Accrued Expenses Accrued expenses consists of the following (in thousands): 

        December 31,

        December 31,

        2024

        2023

        Accrued professional service fees
         
        $
        667