Company: SCLXW
Filing Date: 2025-12-29
Form Type: 424B3
Source: 0001193125-25-335429
Chunk: 614

Company: Scilex Holding Co
Filing Date: 2025-12-29
Form: 424B3
Chunk 614
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’s consolidated balance sheets. The fair value of Penny Warrants as
of September 21, 2023, the date of issuance, was $10.4 million.

As of each of September 30, 2025 and December 31, 2024, there were
6,500,000 Penny Warrants outstanding that were fully vested and such warrants became exercisable on March 14, 2025.

On July 22, 2025, the
Company entered into the Option Agreement with Oramed, pursuant to which it has the option to repurchase the Penny Warrants. See Note 7 for the additional discussion of the Option Agreement and the Warrant Repurchase.

Excise Tax

In December 2022, the Department of the
Treasury and the Internal Revenue Service (the “IRS”) issued guidelines on the implementation of the new code section added by the Inflation Reduction Act of 2022, which imposes a 1% excise tax on the total fair market value of stock
repurchases during the tax year, subject to adjustments. Pursuant to the terms of the Sorrento SPA, the Company repurchased the Purchased Securities from Sorrento. The total fair market value of the Purchased Securities was offset by the fair market
value of the shares issued during the year ended December 31, 2023. The Company has accrued $1.3 million of the excise tax liability during the year ended December 31, 2023, which was recorded as accrued expenses under current
liabilities on the unaudited condensed consolidated balance sheets. During the nine months ended September 30, 2025, the Company made a total of $0.9 million payments for the excise tax. As of September 30, 2025, the excise tax
liability was fully paid off.

9. Stockholders’ Deficit

SPAC Warrants

Upon the completion of the Scilex
Business Combination, the Company assumed the Private Warrants and the public warrants to purchase Common Stock, each with an exercise price of $402.50 per whole share (the “Public Warrants”, and together with the Private Warrants, the
“SPAC Warrants”).

Holders of the SPAC Warrants are entitled to acquire shares of Common Stock. The SPAC Warrants will expire five years after
the completion of the Scilex Business Combination or earlier upon redemption or liquidation.

If the reported last sale price of the Common