Company: SCLXW
Filing Date: 2025-12-16
Form Type: S-1
Source: 0001193125-25-319720
Chunk: 506

Company: Scilex Holding Co
Filing Date: 2025-12-16
Form: S-1
Chunk 506
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 to acquire the rights to certain patents, trademarks, regulatory approvals, data, contracts, and other rights related to ELYXYB and its commercialization in the United States and Canada (the “ELYXYB Territory”). As consideration for the acquisition, the Company assumed various rights and obligations under the asset purchase agreement between BDSI and Dr. Reddy’s Laboratories Limited, a company incorporated under the laws of India (“DRL”), dated August 3, 2021 (the “DRL APA”), including an irrevocable, royalty-free, exclusive license to know-howand patents of DRL related to ELYXYB and necessary or used to exploit ELYXYB in the ELYXYB Territory. No cash consideration was or will be payable to the Sellers for such acquisition; however, the obligations under the DRL APA that were assumed by the Company include contingent sales and regulatory milestone payments and sales royalties. The Company is also obligated to make quarterly royalty payments to DRL on net sales of ELYXYB in the ELYXYB Territory. In April 2023, the Company launched ELYXYB in the U.S. As of December 31, 2024 and 2023, the Company had ending balances of accrued royalty payables of $ 0.1million and $ 5.0thousand, respectively, which was recorded as accrued expenses under current liabilities on the consolidated balance sheets. During the years ended December 31, 2024 and 2023, the Company made royalty payments in the amount of $ 0.3million and $ 26.0thousand, respectively. As of December 31, 2024, nosales or regulatory milestone payments had been ac crued as the re were no potential milestones yet considered probable of achievement . F-20

**4. Fair Value Measurements**

The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the level of inputs used in such measurements (in thousands):

|                                          |     | December 31, 2024 |        |     |                                        |   |     |                                            |   |     |                                         |        |
|:-----------------------------------------|:----|:------------------|-------:|:----|:---------------------------------------|:--|:----|:-------------------------------------------|:--|:----|:----------------------------------------|-------:|
|                                          |     | Balance           |        |     | Quoted Pricesin ActiveMarkets(Level 1)