Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119831
Chunk: 142

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 142
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 receiving approval for
commercialization in the applicable jurisdiction.

86

Risks Related to our Relationship with Sorrento Sorrento previously supported many of our important corporate functions. Accordingly, our historical consolidated financial statements may not necessarily be indicative of the conditions that would have existed or our results of operations if we had been operated as an unaffiliated company of Sorrento, and we have and will continue to incur incremental costs as a stand-alone public company. We have completed the process of replicating and replacing certain functions, systems and infrastructure previously provided by Sorrento (our former controlling stockholder) prior to and subsequent to the Business Combination. We currently have no shared services or other intercompany arrangements. We have made and continue to make investments and hire additional employees to operate without access to Sorrento’s operational and administrative infrastructure. These functions, systems and infrastructure are costly to implement. Historically, Sorrento performed or supported many important corporate functions for us. Our consolidated financial statements for the fiscal years ended December 31, 2023, 2022 and 2021 reflect charges for these services on an allocation basis. As a result, such consolidated financial statements may not be reflective of conditions that would have existed or what our results of operations would have been had we been a stand-alone public company and no longer a majority-owned subsidiary of Sorrento during such periods. We have incurred significant costs to replace the services and resources that are no longer provided by Sorrento. We are also incurring additional costs as a stand-alone public company. As a stand-alone public company, our total costs related to certain support functions may differ from the costs that were historically allocated to us from Sorrento. As we now operate separately from Sorrento, if we are not able to maintain adequate systems and business functions, we may not be able to operate our business effectively or at comparable costs, and our profitability may decline. Risks Related to Ownership of our Common Stock The market price of our Common Stock may fluctuate significantly, and investors in our Common Stock may lose all or a part of their investment. The market prices for securities of biotechnology and pharmaceutical companies have historically been highly volatile, and the market has from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. For example, from November 11, 2022 (the first trading day following the closing of the Business Combination) to May 5, 2025, our closing stock price ranged from $3.99 to