Core Viewpoint - Scilex Holding Company has completed the initial tranche of a $150 million investment in Datavault AI Inc., acquiring 15 million shares at an effective price of $0.5378 per share, with potential for additional shares pending stockholder approval [1]. Company Overview - Scilex is focused on acquiring, developing, and commercializing non-opioid pain management products for acute and chronic pain, as well as neurodegenerative and cardiometabolic diseases [3][5]. - The company targets high unmet needs in the market with its non-opioid therapies, aiming to improve patient outcomes [3]. Commercial Products - Scilex's commercial products include: - ZTlido® (lidocaine topical system) 1.8%, approved for neuropathic pain relief [3]. - ELYXYB®, an FDA-approved oral solution for acute migraine treatment [3]. - Gloperba®, the first liquid oral version of colchicine for gout flare prophylaxis [3]. Product Candidates - Scilex has three product candidates in development: - SP-102 (SEMDEXA), a viscous gel for epidural injections to treat sciatica, which has completed Phase 3 studies and received Fast Track status from the FDA [4]. - SP-103, a next-generation lidocaine topical system for acute pain, recently completed a Phase 2 trial and has also received Fast Track status [4]. - SP-104, a low-dose naltrexone hydrochloride for fibromyalgia treatment [4]. Investment Details - The initial tranche of the investment in Datavault AI Inc. involves the acquisition of 15 million shares, with the potential for up to 278,914,094 shares in total, subject to stockholder approval [1]. - The effective purchase price for the shares is $0.5378, with adjustments possible for stock splits [1].

Core Insights - Datavault AI Inc. (NASDAQ: DVLT) shares experienced a significant increase after securing a $150 million investment in Bitcoin to enhance its supercomputing capabilities [1][3] - The stock surged over 23% in after-hours trading, building on a 64% increase from the previous close [2][4] Investment Details - The investment was made by Scilex Holding Company, aimed at improving Datavault's supercomputing infrastructure, expanding independent data exchanges, and creating new revenue streams [3] - The transaction was executed in Bitcoin at the current spot exchange rate, reflecting a strategic move to capitalize on the growing biotech data monetization market [3] Market Performance - Datavault AI shares closed at $0.8348 during regular trading and rose to an intraday high of $1.07, marking a total increase of 64% from the previous close [2][4] - In contrast, Scilex Holding's stock fell by 2.16% in after-hours trading despite a 1.92% increase earlier in the day [4]

Core Viewpoint - Scilex Holding Company has announced a strategic investment of $150 million in Bitcoin in Datavault AI Inc. to support its growth in supercomputing infrastructure and data monetization [1][3]. Company Overview - Scilex is focused on acquiring, developing, and commercializing non-opioid pain management products for acute and chronic pain, as well as neurodegenerative and cardiometabolic diseases [6][7]. - Datavault AI is positioned to leverage AI-driven analytics and blockchain technology to address challenges in data integrity and monetization across various industries, including biotech and energy [2][11]. Investment Details - The investment will provide Datavault with growth capital to expand its operations and unlock new revenue streams [1]. - Scilex is expected to receive up to 278,914,094 shares of Datavault common stock at an effective purchase price of $0.5378 per share, with specific terms regarding share issuance and board representation [4]. Market Potential - The global AI market is projected to reach $1.8 trillion by 2030, while the life sciences analytics market is estimated at $35.69 billion in 2024, growing at an 11.4% CAGR through 2030 [2]. - The biotech data monetization market is expected to reach a size of $30-50 billion by 2024, indicating significant growth potential for Scilex's investment strategy [3]. Strategic Alignment - Scilex aims to leverage its expertise in the biotech sector to guide Datavault in maximizing revenue generation while expanding its market presence [5]. - The collaboration is expected to create a marketplace for Real-World Assets (RWA) in the biotech and pharmaceutical industry, utilizing blockchain technology for ownership representation [3].

Core Viewpoint - Scilex Holding Company has signed a non-binding Memorandum of Understanding (MOU) with Biconomy.com to explore future cryptocurrency and treasury management strategies, potentially involving over a billion dollars in digital assets [1][2]. Company Overview - Scilex is focused on acquiring, developing, and commercializing non-opioid pain management products for acute and chronic pain, as well as neurodegenerative and cardiometabolic diseases [4][6]. - The company targets high unmet needs and large market opportunities with non-opioid therapies, aiming to improve patient outcomes [4]. Product Portfolio - Scilex's commercial products include: - ZTlido® (lidocaine topical system) 1.8%, approved for neuropathic pain relief [4]. - ELYXYB®, an FDA-approved oral solution for acute migraine treatment [4]. - Gloperba®, the first liquid oral version of colchicine for gout flare prophylaxis [4]. - The company has three product candidates in development: - SP-102 (SEMDEXA), a viscous gel for lumbosacral radicular pain, with a completed Phase 3 study and Fast Track status from the FDA [5]. - SP-103, a next-generation lidocaine topical system for acute pain, recently completing a Phase 2 trial [5]. - SP-104, a low-dose naltrexone hydrochloride for fibromyalgia treatment [5]. Strategic Collaboration - The MOU with Biconomy aims to establish a cryptocurrency treasury management strategy that balances security, liquidity, compliance, and yield [2]. - The collaboration is intended to create long-term value in Scilex's digital assets and support the transition to a crypto-powered economy [3].

Core Insights - Scilex Holding Company has signed an agreement with an institutional investor to exchange its shares in Semnur Pharmaceuticals, valued at approximately $200 million, for an equivalent amount in Bitcoin [1] - The transaction involves 12.5 million shares at a price of $16 per share [1] - Scilex is also collaborating with the cryptocurrency platform Biconomy to advance its cryptocurrency reserves and financial management strategy [1]

Core Insights - Scilex Holding Company has entered into a Securities Purchase Agreement to exchange $200 million of common stock of its subsidiary Semnur Pharmaceuticals for $200 million in Bitcoin [1][2] Company Overview - Scilex is focused on acquiring, developing, and commercializing non-opioid pain management products for acute and chronic pain, as well as neurodegenerative and cardiometabolic diseases [1][7] - The company aims to address high unmet needs in the market with non-opioid therapies [7] Transaction Details - The institutional investor will purchase 12,500,000 shares of Semnur common stock at $16.00 per share, subject to adjustments for various corporate actions [2] - The transaction is expected to close around September 23, 2025, pending customary closing conditions [2] Regulatory Information - The shares sold under the SPA are not registered under the Securities Act and cannot be resold in the U.S. without proper registration or exemption [3] Strategic Partnerships - Scilex has engaged Biconomy.com to assist in developing cryptocurrency strategies, including reserve buildup and treasury management [5] Product Portfolio - Scilex's commercial products include ZTlido, ELYXYB, and Gloperba, targeting various pain management needs [7][8] - The company has three product candidates in development: SP-102, SP-103, and SP-104, focusing on non-opioid pain therapies [9][11]

Core Viewpoint - Semnur Pharmaceuticals has successfully completed its business combination with Denali Capital Acquisition Corp, transitioning to a public company to enhance growth and address non-opioid pain management needs [1][2][3] Company Overview - Semnur Pharmaceuticals, Inc. is a clinical late-stage specialty pharmaceutical company focused on developing and commercializing novel non-opioid pain therapies, particularly targeting moderate to severe chronic radicular pain/sciatica with its product candidate SP-102 (SEMDEXA™) [4][5] - The combined company will operate under the name Semnur Pharmaceuticals, Inc., with shares trading on the OTC Markets under the ticker symbols "SMNR" and "SMNRW" starting September 23, 2025 [2][7] Business Combination Details - The business combination was officially closed on September 22, 2025, allowing Semnur to access public capital markets for business growth [1][3] - Scilex Holding Company owns approximately 87.5% of Semnur's common stock post-business combination, indicating strong backing for the company's future endeavors [7] Leadership Statements - Henry Ji, Executive Chairperson of Semnur, emphasized the importance of public capital markets in enhancing business growth and fulfilling the company's mission [3] - Jaisim Shah, CEO of Semnur, expressed pride in the company's leadership in non-opioid therapeutics and the aim to accelerate access to these treatments through advancing clinical development and payer adoption [3] Product Development Focus - Semnur is advancing its second Phase 3 clinical development for SP-102, which is a novel gel formulation for epidural administration aimed at treating chronic radicular pain/sciatica [3][4] - The company is committed to increasing access to prescription non-opioid therapeutics and expanding its market presence [3]

Core Viewpoint - Scilex Holding Company announced the successful closing of a business combination with Denali Capital Acquisition Corp, resulting in the formation of Semnur Pharmaceuticals, Inc., which will focus on non-opioid pain management products [1][2][3] Company Overview - Scilex is dedicated to acquiring, developing, and commercializing non-opioid pain management products for acute and chronic pain, as well as neurodegenerative and cardiometabolic diseases [1][5] - The company aims to address high unmet needs in the market with its innovative therapies [5] Business Combination Details - The combined entity will operate under the name Semnur Pharmaceuticals, Inc., with shares trading on the OTC Markets under the ticker symbols "SMNR" and "SMNRW" [2][6] - Scilex holds approximately 87.5% of Semnur's common stock post-business combination [6] Leadership Statements - Henry Ji, CEO of Scilex, emphasized the importance of public capital markets for business growth and fulfilling the mission of addressing non-opioid pain management needs [3] - Jaisim Shah, CEO of Semnur, expressed pride in leading the development of prescription non-opioid therapeutics and aims to accelerate access to these treatments [3] Product Pipeline - Semnur's lead product candidate, SP-102 (SEMDEXA), is a novel gel formulation for epidural administration targeting chronic radicular pain/sciatica [10] - Scilex has additional product candidates, including SP-103 and SP-104, targeting acute pain and fibromyalgia, respectively [8]

Core Viewpoint - Semnur Pharmaceuticals, Inc. has received approval from Denali Capital Acquisition Corp's shareholders for a business combination, which is expected to close in September 2025, allowing Semnur to operate as the combined entity [1][2]. Company Overview - Semnur Pharmaceuticals is a majority-owned subsidiary of Scilex Holding Company, focusing on non-opioid pain management products for acute and chronic pain, as well as neurodegenerative and cardiometabolic diseases [1][4]. - Scilex Holding Company is dedicated to developing and commercializing therapies that address high unmet medical needs in pain management [4]. Business Combination Details - The business combination was approved during an Extraordinary General Meeting held on September 3, 2025, where all proposals were accepted [2]. - Denali has filed a Current Report on Form 8-K with the SEC to disclose the voting results from the meeting [3]. Product Portfolio - Scilex's commercial products include: - ZTlido, a topical lidocaine product for neuropathic pain [4]. - ELYXYB, an FDA-approved oral solution for acute migraine treatment [4]. - Gloperba, a liquid oral version of colchicine for gout flare prophylaxis [4]. - Scilex has three product candidates in development: - SP-102 (SEMDEXA™), a viscous gel for treating lumbosacral radicular pain, which has completed a Phase 3 study [5]. - SP-103, a next-generation lidocaine topical system for acute pain, recently completing a Phase 2 trial [5]. - SP-104, a low-dose naltrexone for fibromyalgia treatment [5]. Market Position - Semnur is positioned as a late-stage specialty pharmaceutical company focused on novel non-opioid pain therapies, with its lead product candidate being SP-102 [8].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Scilex Holding Company's unaudited consolidated financial statements and notes on operations, accounting, liquidity, and recent events [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' deficit at specific points in time Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :------------------ | | Cash and cash equivalents | $4,099 | $3,272 | | Accounts receivable, net | $16,767 | $26,442 | | Inventory | $2,519 | $2,436 | | Prepaid expenses and other current assets | $10,286 | $9,397 | | **Total current assets** | **$33,671** | **$41,547** | | Property and equipment, net | $705 | $708 | | Operating lease right-of-use asset | $1,868 | $2,225 | | Intangibles, net | $31,443 | $32,453 | | Investments | $2,468 | $2,420 | | Goodwill | $13,481 | $13,481 | | Other long-term assets | $119 | $119 |\ | **Total assets** | **$83,755** | **$92,953** | | | | | | LIABILITIES AND STOCKHOLDERS' DEFICIT (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :------------------ | | Accounts payable | $59,155 | $52,620 | | Accrued payroll | $1,633 | $1,505 | | Accrued rebates and fees | $192,940 | $162,517 | | Accrued expenses | $6,548 | $2,841 | | Current portion of deferred consideration | $427 | $447 | | Debt, current | $39,871 | $34,876 | | Purchased revenue liability, current | $4,590 | $4,115 | | Current portion of operating lease liabilities | $768 | $714 | | **Total current liabilities** | **$305,932** | **$259,635** | | Long-term portion of deferred consideration | $2,240 | $2,448 | | Debt, net of issuance costs | — | $845 | | Purchased revenue liability, net of current portion | $3,010 | $2,685 | | Derivative liabilities | $20,269 | $18,303 | | Operating lease liabilities, net of current portion | $1,126 | $1,523 | | Other long-term liabilities | $165 | $155 | | **Total liabilities** | **$332,742** | **$285,594** | | **Total stockholders' deficit** | **$(248,987)** | **$(192,641)** | | **Total liabilities and stockholders' deficit** | **$83,755** | **$92,953** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance over specific periods, showing revenues, expenses, and net loss Condensed Consolidated Statements of Operations (in thousands, except per share) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | $9,896 | $16,370 | $14,900 | $27,254 | | Cost of revenue | $3,272 | $4,390 | $4,656 | $8,230 | | Research and development | $6,187 | $2,004 | $8,643 | $5,112 | | Selling, general and administrative | $19,841 | $24,598 | $47,901 | $53,876 | | Intangible amortization | $1,008 | $1,001 | $2,010 | $2,028 | | Legal settlements | $95 | — | $95 | $(6,891) | | Total net operating costs and expenses | $30,403 | $31,993 | $63,305 | $62,355 | | Loss from operations | $(20,507) | $(15,623) | $(48,405) | $(35,101) | | Loss on derivative liability | $12,375 | $15,284 | $1,966 | $15,741 | | Change in fair value of debt and liability instruments | $8,366 | $6,099 | $14,480 | $10,004 | | Interest expense, net | $2,682 | $571 | $5,163 | $1,102 | | Loss on foreign currency exchange | $99 | $5 | $95 | $11 | | Total other expense | $23,522 | $21,959 | $21,704 | $26,858 | | Loss before income taxes | $(44,029) | $(37,582) | $(70,109) | $(61,959) | | Income tax expense | $19 | — | $19 | — | | Net loss | $(44,048) | $(37,582) | $(70,128) | $(61,959) | | Deemed dividend | $(43,753) | — | $(43,753) | — | | Net loss attributable to common stockholders | $(86,061) | $(37,582) | $(112,141) | $(61,959) | | Net loss per share attributable to common stockholders — basic and diluted | $(7.42) | $(7.67) | $(9.68) | $(15.49) | | Weighted average number of shares during the period — basic and diluted | 11,595 | 4,901 | 11,580 | 3,999 | [Condensed Consolidated Statements of Stockholders' Deficit](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit) This section outlines changes in the company's equity over time, including net loss, stock-based compensation, and treasury stock movements - The company's total stockholders' deficit increased from **$(192,641) thousand** as of December 31, 2024, to **$(248,987) thousand** as of June 30, 2025, primarily due to a net loss of **$(42,308) thousand** and a deemed dividend of **$(43,753) thousand** related to anti-dilution adjustments for Penny Warrants upon a Reverse Stock Split[25](index=25&type=chunk)[23](index=23&type=chunk)[36](index=36&type=chunk) - Stock-based compensation contributed **$3,314 thousand** and **$3,279 thousand** to additional paid-in capital during the periods ending March 31, 2025, and June 30, 2025, respectively[25](index=25&type=chunk) - Treasury stock decreased from **$(90,522) thousand** to **$(76,915) thousand**, reflecting transfers for Tranche B Notes deferral, Gloperba Ex-U.S. License, and Oramed Note maturity extension[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities, showing the net change in cash Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash proceeds from operating activities | $13,057 | $11,702 | | Net cash used for investing activities | $(548) | $(300) | | Net cash used for financing activities | $(11,682) | $(6,465) | | Net change in cash, cash equivalents and restricted cash | $827 | $4,937 | | Cash, cash equivalents and restricted cash at beginning of period | $3,272 | $4,729 | | Cash, cash