Scilex pany(US:SCLX)2025-11-14 21:33Financial Performance - Net revenue for the three months ended September 30, 2025, was $10,560,000, a decrease of 26.5% from $14,436,000 in the same period of 2024[22] - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $257,234,000, compared to a loss of $4,388,000 in the same period of 2024[22] - The company reported a comprehensive loss of $260,790,000 for the three months ended September 30, 2025, compared to a loss of $1,228,000 in the same period of 2024[22] - Net loss for the nine months ended September 30, 2025, was $327.948 million, compared to a net loss of $66.347 million for the same period in 2024[29] - The company reported a net loss of $42.31 million for the quarter ending June 30, 2025, contributing to an accumulated deficit of $631.44 million[25] Assets and Liabilities - Total assets increased to $275,879,000 as of September 30, 2025, compared to $92,953,000 on December 31, 2024[20] - Total liabilities rose to $455,598,000 as of September 30, 2025, compared to $285,594,000 on December 31, 2024[20] - The company’s accumulated deficit increased to $888,674,000 as of September 30, 2025, from $563,052,000 on December 31, 2024[20] - As of September 30, 2025, the Company reported negative working capital of $342.5 million and an accumulated deficit of $888.7 million[69] Expenses - Research and development expenses increased to $3,899,000 for the three months ended September 30, 2025, up from $2,349,000 in the same period of 2024, representing a 66.1% increase[22] - Selling, general and administrative expenses surged to $188,824,000 for the three months ended September 30, 2025, compared to $29,734,000 in the same period of 2024, reflecting a 534.5% increase[22] Cash Flow and Financing - Cash and cash equivalents decreased to $878,000 as of September 30, 2025, from $3,272,000 on December 31, 2024[20] - The company reported net cash proceeds from operating activities of $21.287 million for the nine months ended September 30, 2025, up from $16.815 million in 2024, representing a 26.5% increase[29] - The Company plans to secure additional resources through equity offerings, debt financings, and collaborations to fund operations for at least twelve months[70] Stock and Equity - The weighted average number of shares during the three months ended September 30, 2025, was 11,604,000, compared to 7,557,000 in the same period of 2024[22] - The balance of common stock increased to $785.30 million as of September 30, 2025, following the issuance of common stock upon the exercise of warrants[25] - The total stockholders' deficit reached $888.67 million as of September 30, 2025, indicating a significant financial challenge[25] Business Operations and Development - The company operates primarily in the development of non-opioid products focused on pain management, with all sales based in the United States[42] - The company is currently developing three product candidates: SP-102, SP-103, and SP-104, with SP-102 entering a second Phase 3 study in September 2025[34] - ELYXYB was launched in the U.S. in April 2023, and GLOPERBA was commercialized in June 2024[33] Acquisitions and Agreements - The company completed the acquisition of controlling interest in Scilex Bio, resulting in an increase of $3.25 million in additional paid-in capital[25] - The Company entered into a License Agreement with Romeg for GLOPERBA, involving an upfront fee of $2.0 million and potential milestone payments up to $13.0 million[75] - The Company entered into a License Agreement for ZTlido, granting exclusive rights for commercialization outside the U.S. and sharing 50% of net revenue with the Licensee[82] Cryptocurrency Strategy - The Company adopted a cryptocurrency treasury strategy in September 2025, beginning to acquire Bitcoin and measuring eligible crypto assets at fair value[46] - As of September 30, 2025, the Company held 1,720 Bitcoins with a fair value of $196.6 million, reflecting additions of $200 million and dispositions of $8.1 million during the period[125] Debt and Financial Instruments - The Company issued convertible debentures totaling $25 million in March 2023, fully repaid by March 2024[63] - The Company recorded changes in fair value of certain financial instruments in the unaudited condensed consolidated statements of operations[52] - The Company issued a senior secured promissory note to Oramed in the principal amount of $101.9 million, with a fair value of $24.9 million as of September 30, 2025, using a discount rate of 36.00%[102] Regulatory and Compliance - The Company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2024-03 and ASU 2024-04[55][56] - The Licensee is responsible for obtaining regulatory approval for Gloperba Products outside the U.S. at its discretion[87]