Company: LBRX
Filing Date: 2025-07-23
Form Type: DRS/A
Source: 0000950123-25-006557
Chunk: 366

Company: LB PHARMACEUTICALS INC
Filing Date: 2025-07-23
Form: DRS/A
Chunk 366
---
 2022 to January 2023, in connection with services provided for the issuance of the 2022 Notes, the Company issued to a placement agent, warrants to purchase the Company’s common stock at an exercise price of $0.01 per share. The number
of shares underlying the warrants was based upon 10% of the value of the 2022 Notes divided by the conversion price of the 2022 Notes upon conversion in the next round of financing or $2.50 upon maturity. As the conversion price could be based
on any class of shares, and the warrants are for common stock the Company determined that the warrants should be equity-classified as there was no obligation for the Company to raise an additional round of equity financing and no other criteria for
liability classification under ASC 718, Stock Compensation,were met. The warrants expire ten years after issuance.

The aggregate grant
date fair value of the placement agent warrants issued in conjunction with the 2022 Notes was $1.5 million. The stock-based compensation cost related to the warrants was treated as a debt issuance cost for the 2022 Notes (see Note 11
Notes).

In August 2023, the Company executed a final agreement with the placement agent replacing all prior agreements. As part of this
agreement, the Company issued warrants to purchase 1.5 million of the Company’s common stock exercisable six months after the grant date at an exercise price of $0.01 per share. Also, the 0.3 million warrants issued as part of
the Series B Stock Offering (as described above) were amended and reissued and are exercisable six months after the grant date at an exercise price of $0.01 per share. The warrants expire ten years after issuance.

As the fair value of the replacement warrants was less than the grant date fair value of the original warrants, no incremental compensation costs were
recorded.

11. Notes

On August 29,
2023, the Company entered into the Series C Offering (as described in Note 6 Redeemable Convertible Preferred Stock and Equity). The principal of all 2022 Notes and 2020 Notes outstanding at the time

F-31

LB Pharmaceuticals Inc Notes to Financial Statements of the closing, in the aggregate amount of $35.7 million, was converted into 23.8 million shares of Series C preferred stock at a price of $1.50 per share. The Company recorded a loss on extinguishment of debt in the amount of $