0000950170-24-096199 | 10-Q | XBRL Viewer

Nature of Operations and Basis of Presentation

6 Months Ended

Jun. 30, 2024

Nature of Operations and Basis of Presentation

1. Nature of Operations and Basis of Presentation

Organization and Principal Activities

Scilex Holding Company (“Scilex” and together with its wholly owned subsidiaries, the “Company”) is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain. The Company was originally formed in 2019 and currently has five wholly owned subsidiaries: Scilex Inc. (“Legacy Scilex”), Scilex Pharmaceuticals Inc. (“Scilex Pharma”), Semnur Pharmaceuticals, Inc. (“Semnur”), SCLX DRE Holdings LLC and SCLX Stock Acquisition JV LLC. The business combination with Vickers (the “Business Combination”) was closed in November 2022.

The Company launched its first commercial product in October 2018, ZTlido (lidocaine topical system) 1.8% (“ZTlido”), a prescription lidocaine topical system that is designed with novel technology to address the limitations of current prescription lidocaine therapies by providing significantly improved adhesion and continuous pain relief throughout the 12-hour administration period. In June 2022, the Company in-licensed the exclusive right to commercialize GLOPERBA (colchicine USP) oral solution (“GLOPERBA”), a U.S. Food and Drug Administration (“FDA”)-approved prophylactic treatment for painful gout flares in adults, in the United States of America (“U.S.” or the “United States”). In February 2023, the Company acquired the rights related to ELYXYB (celecoxib oral solution) (“ELYXYB”) and the commercialization thereof in the U.S. and Canada. ELYXYB is a first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults. The Company launched ELYXYB in the U.S. in April 2023 and commercialized GLOPERBA in the U.S. in June 2024.

The Company is currently developing three product candidates, SP-102 (10 mg, dexamethasone sodium phosphate viscous gel), a novel, viscous gel formulation of a widely used corticosteroid for epidural injections to treat lumbosacral radicular pain, or sciatica for which the Company has completed a Phase 3 study (“SP-102” or “SEMDEXA”), SP-103 (lidocaine topical system) 5.4% (“SP-103”), a next-generation, triple-strength formulation of ZTlido, for the treatment of chronic neck pain and for which the Company completed a Phase 2 trial in acute low back pain (“LBP”) in the third quarter of 2023, and SP-104 (4.5 mg, low-dose naltrexone hydrochloride delayed-burst release low dose naltrexone hydrochloride capsules) (“SP-104”), a novel low-dose delayed-release naltrexone hydrochloride being developed for the treatment of fibromyalgia, for which Phase 1 trials were completed in the second quarter of 2022. Since inception, the Company has devoted substantially all of its efforts to the development of SP-102, SP-103 and SP-104, and the commercialization of ZTlido. In 2024, the Company is also devoting its efforts on the commercialization of GLOPERBA and ELYXYB.

Sorrento Chapter 11 Filing

On February 13, 2023, Sorrento Therapeutics, Inc. (“Sorrento”), the Company’s then-controlling stockholder, and Sorrento’s wholly-owned direct subsidiary, Scintilla Pharmaceuticals, Inc. (“Scintilla” and together with Sorrento, the “Debtors”), commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Debtors’ Chapter 11 proceedings are jointly administered under the caption In re Sorrento Therapeutics, Inc., et al., Case Number 23-90085 (DRJ) (the “Chapter 11 Cases”). While the Company was majority-owned by Sorrento, the Company was not a debtor in the Chapter 11 Cases. Pursuant to that certain Stock Purchase Agreement that we entered into with Sorrento on September 21, 2023 (the “Sorrento SPA”), we repurchased shares of our Common Stock and Series A Preferred Stock from Sorrento. As a result, Sorrento no longer holds a majority of the voting power of the Company’s outstanding capital stock entitled to vote. As of June 30, 2024, the Company had a $3.2 million receivable from Sorrento, which was fully reserved. The Company evaluates the collectability of this receivable on a quarterly basis.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the

Securities and Exchange Commission (“SEC”) regarding interim financial reporting of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, include all adjustments of a normal recurring nature necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations and cash flows. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the SEC on March 12, 2024 (the “Annual Report on Form 10-K”). The interim results for the six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future periods.

Use of Estimates

The preparation of these unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these unaudited condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Management believes that these estimates are reasonable; however, actual results may differ from these estimates.

Customer Concentration Risk

The Company had four customers during the three and six months ended June 30, 2024, each of which individually generated 10% or more of the Company’s total revenue. These customers accounted for 87% and 86% of the Company’s revenue for the three and six months ended June 30, 2024, respectively and individually ranging from 16% to 27% and 11% to 28%, respectively. As of June 30, 2024, these customers represented 94% of the Company’s outstanding accounts receivable, individually ranging between 17% to 27%. Additionally, during the three and six months ended June 30, 2024 and 2023, the Company purchased ZTlido inventory from its sole supplier, Itochu Chemical Frontier Corporation (“Itochu”). In November 2023 and February 2024, respectively, the Company started purchasing ELYXYB and GLOPERBA inventories from its sole suppliers, Contract Pharmaceuticals Ltd Canada (CPL) and Ferndale Laboratories, Inc., respectively. This exposes the Company to concentration of customer and supplier risk. The Company monitors the financial condition of its customers, limits its credit exposure by setting credit limits, and has not experienced any credit losses during the six months ended June 30, 2024 and 2023.

Significant Accounting Policies

There have been no significant changes to the accounting policies during the three and six months ended June 30, 2024, as compared to the significant accounting policies described in Note 1 of the Notes to Consolidated Financial Statements in the Company’s audited consolidated financial statements included in the Annual Report on Form 10-K.

Fair Value Measurements

Financial assets and liabilities are recorded at fair value on a recurring basis in the condensed consolidated balance sheets. The carrying values of the Company’s financial assets and liabilities, including cash and cash equivalents, restricted cash, prepaid and other current assets, accounts payable and accrued expenses approximate to their fair value due to the short-term nature of these instruments. The valuation of the derivative warrant liability for Private Warrants, Firm Warrants and RDO Common Warrants (each as defined below) is outlined in Note 4, utilizing the Black-Scholes option pricing model. The Company has chosen the fair value option for the Convertible Debentures, Oramed Note and FSF Deposit (each as defined below), with the valuation methodologies detailed in Note 7. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. Assets and liabilities recorded at fair value are categorized based

upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels are directly related to the amount of subjectivity with the inputs to the valuation of these assets or liabilities as follows:

Level 1 - Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2 - Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable inputs for similar assets or liabilities. These include quoted prices for identical or similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments that are readily convertible into cash without penalty and with original maturities of three months or less at the date of purchase to be cash equivalents. The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents are valued at cost, which approximate their fair value.

Restricted cash for the periods presented consist of deposits placed in a segregated bank account as required under the terms of the Credit and Security Agreement, dated as of June 27, 2023, between Scilex Pharma and eCapital Healthcare Corp., which is discussed further in Note 7. Restricted cash is recorded as other long-term assets within the Company’s unaudited condensed consolidated balance sheet.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that together reflect the same amounts shown in the unaudited condensed consolidated statements of cash flows (in thousands):


	As of June 30, 2024		As of December 31, 2023
Cash and cash equivalents	$	6,888	$	3,921
Restricted cash		2,778		808
Total cash, cash equivalents, and restricted cash	$	9,666	$	4,729

Convertible Debentures, the Oramed Note and FSF Deposit

The Company has elected the fair value option to account for the Convertible Debentures (as defined in Note 2 “Liquidity and Going Concern” below) that were issued in March and April 2023, as discussed further in Note 7. The Company has also elected the fair value option to account for the Oramed Note (as defined in Note 4 “Fair Value Measurements” below) and for the FSF Deposit (as defined in Note 2 “Liquidity and Going Concern” below) that was issued in June 2024, as discussed further in Note 7. The Company recorded the Convertible Debentures, the Oramed Note and FSF Deposit at fair value upon issuance with changes in fair value recorded as change in fair value of debt and liability instruments in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk, if any, which are recorded as a component of other comprehensive income. Interest expense related to these financial instruments is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to the Convertible Debentures, the Oramed Note and FSF Deposit were expensed as incurred. As of June 30, 2024 and December 31, 2023, the weighted-average interest rates for the short-term loans, including the Convertible Debentures, the Oramed Note and FSF Deposit were 13.56% and 13.55%, respectively.

Treasury Stock

The Company uses the cost method to account for repurchases of its stock. In the computation of net (loss) income per share, treasury shares are not included as part of the outstanding shares.

Stock Incentive and Employee Benefit Plans

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock Incentive and Employee Benefit Plans

10. Stock Incentive and Employee Benefit Plan

2017 Scilex Pharmaceuticals Inc. Equity Incentive Plan

In June 2017, the Board of Directors of the Company (the “Board”) adopted the Scilex Pharmaceuticals Inc. Equity Incentive Plan (the “Scilex Pharma 2017 Plan”). In connection with the corporate reorganization in March 2019, the Scilex Pharma 2017 Plan was terminated. Accordingly, after such time, no additional awards were granted under the Scilex Pharma 2017 Plan.

Scilex Holding Company 2019 Stock Option Plan

In May 2019, the Board adopted the Scilex Holding Company 2019 Stock Option Plan (the “2019 Stock Option Plan”), which subsequently was amended in December 2020. The 2019 Stock Option Plan was terminated at the closing of

the Business Combination, and no further awards have been granted under the 2019 Stock Option Plan thereafter. However, the 2019 Stock Option Plan will continue to govern outstanding awards granted thereunder.

Scilex Holding Company 2022 Equity Incentive Plan

In October 2022, the Board adopted the Scilex Holding Company 2022 Equity Incentive Plan (the “Equity Incentive Plan”). As of June 30, 2024, a total of 20,129,644 shares of Common Stock were available and have been reserved for future issuance under the Equity Incentive Plan, which number of shares accounts for the automatic annual increase on January 1, 2024 pursuant to the Equity Incentive Plan.

As of June 30, 2024, options to purchase 34,373,767 shares of Common Stock were outstanding under all equity incentive plans.

Scilex Holding Company 2023 Inducement Plan

On January 17, 2023, the compensation committee of the Board adopted the Scilex Holding Company 2023 Inducement Plan (the “Inducement Plan”). The Inducement Plan provides for the grant of equity-based awards in the form of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, and other awards solely to prospective employees of the Company or an affiliate of the Company provided that certain criteria are met. The initial maximum number of shares available for grant under the Inducement Plan is 1,400,000 shares of Common Stock (subject to adjustment for recapitalizations, stock splits, reorganizations and similar transactions). No awards were granted under the Inducement Plan during the six months ended June 30, 2024.

The following table summarizes stock option activity during the six months ended June 30, 2024 (shares in thousands):


	Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life, in years		Aggregate Intrinsic Value
Outstanding as of December 31, 2023		33,124		$	4.38		7.5	$	7,459
Granted		1,472		$	0.99
Exercised		(101	)	$	1.43
Forfeited/Cancelled		(121	)	$	4.97
Outstanding as of June 30, 2024		34,374		$	4.24		7.1	$	6,662
Exercisable as of June 30, 2024		21,380		$	3.17		6.1	$	4,102

Intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the Common Stock for the options that had exercise prices that were lower than the per share fair value of the Common Stock as of the measurement date of the intrinsic value. The weighted-average grant date fair value per share of stock options granted during the six months ended June 30, 2024 was $0.77 per share. The total intrinsic value of options exercised during the six months ended June 30, 2024 was $19.2 thousand.

Total stock-based compensation recorded within operating expenses was $3.6 million for each of the three months ended June 30, 2024 and 2023, and $7.2 million and $7.3 million for the six months ended June 30, 2024 and 2023, respectively.

The total unrecognized compensation costs related to unvested employee and non-employee stock option grants as of June 30, 2024 were $35.2 million, which the Company expects to recognize over a weighted-average period of approximately 2.7 years.

Scilex Holding Company 2022 Employee Stock Purchase Plan

On October 17, 2022, the Board adopted the Scilex Holding Company 2022 Employee Stock Purchase Plan (the “ESPP”). The purchase price of the Common Stock is equal to 85% of the lesser of the market value of such shares at the beginning of an offering period or the date of purchase. As of June 30, 2024, the total number of shares of Common

Stock that may be issued under the ESPP shall not exceed 4,476,601, which was increased from 2,875,759 shares as a result of automatic annual increase on January 1, 2024.

Total stock-based compensation recorded as operating expense for the ESPP was $63.7 thousand and $0.1 million for the three and six months ended June 30, 2024, respectively and nil for the three and six months ended June 30, 2023, respectively.

As of June 30, 2024, there were 167,369 shares of Common Stock issued under the ESPP.

Valuation Assumptions

The Company calculates the fair value of stock options and ESPP awards granted to employees and nonemployees using the Black-Scholes option pricing method. The Black-Scholes option pricing method requires the use of subjective assumptions.

The following assumptions were used in the Black-Scholes option pricing model to estimate stock-based compensation on the date of grant for stock options:


		Six Months Ended June 30, 2024
Stock options:
Expected dividend yield		0.00%
Expected volatility		72% - 97%
Risk-free interest rate		4.33% - 4.44%
Term of options (in years)		5.5 - 6.3
Employee stock purchase plan:
Expected dividend yield		0.00%
Expected volatility		129.30%
Risk-free interest rate		5.39%
Expected life (in years)		0.50

Employee Benefit Plan

The Company maintains a defined contribution 401(k) plan available to eligible employees. Employee contributions are voluntary and are determined on an individual basis, limited to the maximum amount allowable under federal tax regulations. The Company made matching contributions to the 401(k) plan totaling $0.5 million and $0.2 million for the six months ended June 30, 2024 and 2023, respectively.

Retainer Shares

On February 13, 2023, the Company entered into a Stock Issuance Agreement (the “2023 SIA”) with a law firm for the provision of legal services to the Company. Under the 2023 SIA, the Company issued 4,000,000 shares of Common Stock to the law firm. On July 1, 2024, the Company entered into another Stock Issuance Agreement (the “2024 SIA”) with the same law firm for the provision of legal services to the Company. Under the 2024 SIA, the Company issued 10,000,000 shares of Common Stock to the same law firm. All such shares are held by the law firm as collateral for current and future outstanding legal fees due from the Company (the “Retainer Shares”). At the option of the law firm, the Retainer Shares may be sold and the net proceeds may be applied against the outstanding legal fees. The Retainer Shares not applied against the outstanding legal fees due will be returned to the Company. As of June 30, 2024, it was not probable that any of the Retainer Shares would be applied against any outstanding legal fees.

Commitments and Contingencies - Schedule of Lease Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
2024 (Remainder of 2024)	$ 425
2025	916
2026	944
2027	724
Total lease payments	3,009
Less imputed interest	(415)
Total lease liabilities	2,594
Less current portion of lease liability	701	$ 759
Lease liability, net of current portion	$ 1,893

Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 753	$ 780
Less: Accumulated depreciation	(39)	(58)
Property and equipment, net	714	722
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	689	689
Furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5	5
Computers & equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9	36
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 50	$ 50

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 6,888	$ 3,921
Accounts receivable, net	38,004	34,597
Inventory	3,073	4,214
Prepaid expenses and other	2,453	4,049
Total current assets:	50,418	46,781
Property and equipment, net	714	722
Operating lease right-of-use asset	2,578	2,943
Intangibles, net	34,456	36,485
Goodwill	13,481	13,481
Other long term assets	2,897	897
Total assets	104,544	101,309
Current liabilities:
Accounts payable	41,787	40,954
Accrued payroll	4,073	2,681
Accrued rebates and fees	125,063	89,658
Accrued expenses	7,988	7,408
Current portion of deferred consideration	469	491
Debt, current	75,370	108,429
Current portion of operating lease liabilities	701	759
Total current liabilities:	255,451	250,380
Long-term portion of deferred consideration	2,667	2,895
Debt, net of issuance costs	29,033	17,038
Derivative liabilities	30,005	1,518
Operating lease liabilities	1,893	2,237
Other long-term liabilities	187	179
Total liabilities	319,236	274,247
Commitments and contingencies (See Note 11)
Stockholders' deficit:
Preferred stock, $0.0001 par value, 45,000,000 shares authorized; 29,057,097 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	0	0
Common stock, $0.0001 par value, 740,000,000 shares authorized; 181,473,622 shares issued and 121,405,037 shares outstanding as of June 30, 2024; 160,084,250 shares issued and 100,015,665 shares outstanding as of December 31, 2023	18	16
Additional paid-in capital	426,165	407,813
Accumulated other comprehensive income	1,851	0
Accumulated deficit	(552,204)	(490,245)
Treasury stock, at cost; 60,068,585 shares as of each of June 30, 2024 and December 31, 2023	(90,522)	(90,522)
Total stockholders' deficit	(214,692)	(172,938)
Total liabilities and stockholders' deficit	$ 104,544	$ 101,309

Net Loss Per Share - potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share (Details) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	74,711,423	48,168,217
Convertible Debentures
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	546,921
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	34,373,767	33,123,798
Public Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,854,309	6,854,309
Firm Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,832,653	0
RDO Common Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	15,000,000	0
Placement Agent Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,200,000	0
Deposit Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,250,000	0
Retainer Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,000,000	4,000,000
Private Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,613,383	3,613,383
Representative Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	470,588	0
Shares Issuable pursuant to ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	116,723	29,806

Net Loss Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Loss Per Share

12. Net Loss Per Share

The following table sets forth the reconciliation of basic and diluted loss per share for the three and six months ended June 30, 2024 and 2023 (in thousands except per share data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Net loss for basic and diluted loss per share available to common stockholders	$	(37,582	)	$	(26,649	)	$	(61,959	)	$	(57,402	)
Weighted average number of shares outstanding		113,236			142,626			105,571			142,146
Weighted average common stock warrants exercisable for nominal consideration		6,952			—			5,878			—
Weighted average number of shares, basic and diluted		120,188			142,626			111,449			142,146
Loss per share
Basic and Diluted	$	(0.31	)	$	(0.19	)	$	(0.56	)	$	(0.40	)

Basic net income (loss) per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed using the weighted average number of Common Stock and, if dilutive, potential Common Stock outstanding during the period. Potential Common Stock consists of the incremental Common Stock issuable upon the exercise of stock options and warrants (using the treasury stock method or the reverse treasury stock method, as applicable).

In the computation of net (loss) income per share, treasury shares are not included as part of the outstanding shares.

In accordance with FASB ASC 260, Earnings Per Share, Penny Warrants are warrants that would be exercised for no or little consideration and therefore should be included in the calculation of weighted average shares outstanding for purposes of calculating basic and diluted net income (loss) per share. The Closing Penny Warrants become exercisable upon the passage of time and are included in basic and diluted net income (loss) per share from the closing date of September 21, 2023. The Subsequent Penny Warrants to purchase up to an aggregate of 8,500,000 shares of Common Stock are not vested as of the closing date of September 21, 2023 and the vesting is based on the passage of time, the Company’s repayment of the Oramed Note or the occurrence of the Management Sale Trigger Date (as defined therein). Therefore, these Subsequent Penny Warrants are included in the computation for diluted net income per share once all other exercise contingencies are removed except for the passage of time.

The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:


	June 30,		December 31,
	2024		2023
Stock options		34,373,767		33,123,798
Public Warrants		6,854,309		6,854,309
Firm Warrants		5,832,653		—
RDO Common Warrants		15,000,000		—
Placement Agent Warrants		1,200,000		—
Deposit Warrant		3,250,000		—
Retainer Shares		4,000,000		4,000,000
Private Warrants		3,613,383		3,613,383
Representative Warrants		470,588		—
Shares Issuable pursuant to ESPP		116,723		29,806
Convertible Debentures		—		546,921
Total		74,711,423		48,168,217

Liquidity and Going Concern

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity and Going Concern

2. Liquidity and Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Management has assessed the Company’s ability to continue as a going concern for at least one year after the issuance date of the accompanying unaudited condensed consolidated financial statements.

On November 17, 2022, the Company entered into a standby equity purchase agreement (the “Original Purchase Agreement”) with YA II PN, Ltd., a Cayman Islands exempt limited partnership (“Yorkville”). On February 8, 2023, the Company entered into an amended and restated standby equity purchase agreement with Yorkville (the “A&R Yorkville Purchase Agreement”), amending, restating and superseding the Original Purchase Agreement. On, and effective as of, March 25, 2024, the Company and Yorkville mutually agreed to terminate the Amended and Restated Standby Equity Purchase Agreement.

On January 8, 2023, the Company entered into a standby equity purchase agreement (the “B. Riley Purchase Agreement” and together with A&R Yorkville Purchase Agreement, the “Standby Equity Purchase Agreements”) with B. Riley Principal Capital II, LLC (“B. Riley”). Pursuant to each of the Standby Equity Purchase Agreements, the Company had the right, but not the obligation, to sell to each of Yorkville and B. Riley up to $500.0 million of shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) at its request any time during the 36 months following the date on which the registration statement related to each such purchase agreement was initially declared effective by the SEC, subject to certain conditions, which are discussed further in Note 9. As consideration for Yorkville’s and B. Riley’s respective commitment to purchase shares of Common Stock at the Company’s direction, the Company issued 250,000 commitment shares to each of Yorkville (the “Yorkville Commitment Shares”) and B. Riley (the “B. Riley Commitment Shares”). On, and effective as of, February 16, 2024, the Company and B. Riley mutually agreed to terminate the B. Riley Purchase Agreement.

On March 21, 2023, the Company entered into a securities purchase agreement with Yorkville (the “Yorkville SPA”), pursuant to which the Company would issue and sell to Yorkville convertible debentures in an aggregate principal amount of up to $25.0 million (the “Convertible Debentures”). Convertible Debentures in the principal amount of $25.0 million (for net cash proceeds of $24.0 million) were issued and sold pursuant to the Yorkville SPA, which is discussed further in Note 7. The Company fully repaid the Convertible Debentures in March 2024.

On June 27, 2023, Scilex Pharma entered into a Credit and Security Agreement (the “eCapital Credit Agreement”) with eCapital Healthcare Corp. (the “Lender”), pursuant to which the Lender shall make available loans (the “Revolving Facility”) in an aggregate principal amount of up to $30.0 million (the “Facility Cap”). The proceeds of the Revolving Facility will be used for (i) transaction fees incurred in connection with the eCapital Credit Agreement, (ii) working capital needs of Scilex Pharma and (iii) other uses not prohibited under the eCapital Credit Agreement. As of June 30, 2024, the Company has an outstanding balance of $17.3 million under the Revolving Facility. See Note 7 for additional discussion of the terms of the eCapital Credit Agreement.

On December 22, 2023, the Company entered into a Sales Agreement (the “ATM Sales Agreement”) with B. Riley Securities, Inc., Cantor Fitzgerald & Co. and H.C. Wainwright & Co., LLC (the “Sales Agents”). Pursuant to the ATM Sales Agreement, the Company may offer and sell (the “Offering”) shares of Common Stock up to $170.0 million (the “ATM Shares”), through or to the Sales Agents as part of the Offering. The Company has no obligation to sell any shares of Common Stock under the ATM Sales Agreement and may suspend offers thereunder at any time. The Offering will terminate upon (i) the election of the Sales Agents upon the occurrence of certain adverse events, (ii) three business days’ advance notice from the Company to the Sales Agents or a Sales Agent to the Company, or (iii) the sale of all $170.0 million of shares of Common Stock thereunder. As of June 30, 2024, the Company sold 92,295 shares of Common Stock pursuant to the ATM Sales Agreement for net proceeds of approximately $0.1 million.

On June 11, 2024, the Company entered into that certain Commitment Side Letter (the “Commitment Letter”) with FSF 33433 LLC (“FSF Lender”), pursuant to which FSF Lender committed to provide the Company a loan (the “FSF Loan”) in the aggregate amount of $100.0 million (the “Commitment Amount”). The Commitment Amount shall be payable as follows: (i) $85.0 million no later than the date that is 70 days following the date on which the Company receives the Deposit (as defined below) (the “Outside Date” and the funding of the initial $85.0 million, the “Initial Closing”) and (ii) the remaining $15.0 million within 60 days following the Initial Closing (the funding of the second $15.0 million, the “Second Closing”). Pursuant to the Commitment Letter, FSF Lender is required to provide the Company a non-refundable deposit in immediately available funds in the aggregate principal amount of $10.0 million

(the “FSF Deposit” and the date on which such funds are fully received, the “Deposit Date”), which amount will be creditable towards the $85.0 million required to be funded by FSF Lender at the Initial Closing. The Company received the FSF Deposit on June 18, 2024 and issued to FSF Lender a warrant to purchase up to an aggregate of 3,250,000 shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) (subject to adjustment for any stock dividend, stock split, reverse stock split or similar transaction) (the “Deposit Warrant”), with an exercise price of $1.20 per share. The Deposit Warrant is immediately exercisable and will expire five years from the date of issuance.

As of June 30, 2024, the Company’s negative working capital was $205.0 million, including cash and cash equivalents of approximately $6.9 million. During the six months ended June 30, 2024, the Company had operating losses of $35.1 million and cash flows received from operations of $11.7 million. The Company had an accumulated deficit of $552.2 million as of June 30, 2024.

The Company has plans to obtain additional resources to fund its currently planned operations and expenditures and to service its debt obligations (whether under the Oramed Note, the FSF Loan or otherwise) for at least twelve months from the issuance of these unaudited condensed consolidated financial statements through a combination of equity offerings, debt financings, collaborations, government contracts or other strategic transactions. The Company’s plans are also dependent upon the success of future sales of ZTlido, ELYXYB and GLOPERBA, which is still in the early stages of commercialization.

Although the Company believes such plans, if executed, should provide the Company with financing to meet its needs, successful completion of such plans is dependent on factors outside the Company’s control. As a result, management has concluded that the aforementioned conditions, among other things, raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the unaudited condensed consolidated financial statements are issued.

Nature of Operations and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

Securities and Exchange Commission (“SEC”) regarding interim financial reporting of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

Use of Estimates

Customer Concentration Risk

Significant Accounting Policies

Fair Value of Financial Instruments

Fair Value Measurements

Level 1 - Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Cash, Cash Equivalents and Restricted Cash


	As of June 30, 2024		As of December 31, 2023
Cash and cash equivalents	$	6,888	$	3,921
Restricted cash		2,778		808
Total cash, cash equivalents, and restricted cash	$	9,666	$	4,729

Convertible Debentures and Oramed Note

Convertible Debentures, the Oramed Note and FSF Deposit

Treasury Stock

The Company uses the cost method to account for repurchases of its stock. In the computation of net (loss) income per share, treasury shares are not included as part of the outstanding shares.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (37,582)	$ (26,649)	$ (61,959)	$ (57,402)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Stock Incentive and Employee Benefit Plans (Additional Information) (Details) - USD ($)				3 Months Ended		6 Months Ended
	Jul. 01, 2024	Feb. 13, 2023	Oct. 17, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Jan. 17, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of option outstanding to purchase common stock				34,374,000		34,374,000		33,124,000
Options granted weighted-average grant date fair value						$ 0.77
Total intrinsic value of option exercise						$ 19,200
Stock-based compensation expenses						7,171,000	$ 7,307,000
Employee benefit plan contributions by employer						500,000	200,000
Stock issued for services, shares	10,000,000	4,000,000
Accrued legal fees				$ 0		$ 0
2022 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of option outstanding to purchase common stock				34,373,767		34,373,767
Common stock shares reserved for future issuance				20,129,644		20,129,644
2023 Inducement Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares available for grant									1,400,000
Stock-based compensation expenses				$ 3,600,000	$ 3,600,000	$ 7,200,000	7,300,000
Unrecognized compensation cost related to unvested stock option grants				$ 35,200,000		$ 35,200,000
Weighted average period over grant						2 years 8 months 12 days
2022 Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock shares reserved for future issuance				2,875,759		2,875,759
Stock-based compensation expenses				$ 63,700	$ 0	$ 100,000	$ 0
Shares issued under ESPP, shares						167,369
Purchase price of the common stock percentage			85.00%
2022 Employee Stock Purchase Plan \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock shares reserved for future issuance				4,476,601		4,476,601

Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the level of inputs used in such measurements (in thousands):


	June 30, 2024
	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities
Oramed Note	$	75,370	$	—	$	—	$	75,370
FSF Deposit		11,727		—		—		11,727
Derivative liabilities		30,005		—		—		30,005
Other long-term liabilities		187		—		—		187
Total liabilities measured at fair value	$	117,289	$	—	$	—	$	117,289


	December 31, 2023
	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities
Oramed Note	$	104,089	$	—	$	—	$	104,089
Convertible Debentures		4,340		—		—		4,340
Derivative liabilities		1,518		—		—		1,518
Other long-term liabilities		179		—		—		179
Total liabilities measured at fair value	$	110,126	$	—	$	—	$	110,126

The Oramed Note

In September 2023, the Company issued a senior secured promissory note to Oramed Pharmaceuticals Inc. (“Oramed”) in the principal amount of $101.9 million (the “Oramed Note”) (see Note 7). The Company elected the fair value option to account for the Oramed Note with any changes in the fair value of the note recorded in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk, if any, which are recorded as a component of other comprehensive income. The Company uses a discounted cash flow model to determine the fair value of the Oramed Note based on Level 3 inputs. This methodology discounts the interest and principal payments using a risk-adjusted discount rate. The fair value as of June 30, 2024 was determined to be $75.4 million by applying a discount rate of 30.27%. For the three and six months ended June 30, 2024, the Company recorded $4.3 million and $8.1 million in change in fair value of the Oramed Note in the unaudited condensed consolidated statements of operations, respectively. The change in fair value due to instrument-specific credit risk recorded as a component of other comprehensive income was $1.9 million during the three and six months ended June 30, 2024.

FSF Deposit

In June 2024, the Company received the FSF Deposit in the aggregate principal amount of $10.0 million from FSF Lender (see Note 2 and Note 7). The Company elected the fair value option to account for the FSF Deposit with any changes in the fair value of the deposit recorded in the unaudited condensed consolidated statements of operations. The Company uses a probability weighted expected return model coupled with a Monte Carlo simulation and a discounted cash flow analysis to determine the fair value of the FSF Deposit based on Level 3 inputs. The fair value as of June 30, 2024 was determined to be $11.7 million by applying a discount rate of 35.66%. For each of the three and six months ended June 30, 2024, the Company recorded $1.7 million in change in fair value of the FSF Deposit.

Convertible Debentures

In March and April 2023, the Company issued the Convertible Debentures in the principal amount of $25.0 million (see Note 7). The Convertible Debentures were measured at fair value on a recurring basis using Level 3 inputs. The Company used the Binomial Lattice Model valuation technique to measure the fair value of the Convertible Debentures with any changes in the fair value of the Convertible Debentures recorded in the unaudited condensed consolidated statements of operations. Interest expense related to the Convertible Debentures is included in the changes in fair value. The Company fully repaid the Convertible Debentures in March 2024.

Derivative Liabilities

The Company recorded a loss of $15.3 million and $15.7 million for the three and six months ended June 30, 2024, respectively, attributed to warrant liabilities consisting of the Private Warrants, the Firm Warrants and the RDO Common Warrants (each as defined below). The Company recorded a loss of $0.1 million and $5.3 million for the three and six months ended June 30, 2023, respectively, attributed to warrant liability consisting of the Private Warrants. The Company assumed the private placement warrants from Vickers in November 2022 in connection with the Business Combination (“Private Warrants”). The Company issued the Firm Warrants in March 2024 as part of the Bought Deal Offering (as defined below) and RDO Common Warrants in April 2024 as part of the Registered Direct Offering (as defined below).

As of June 30, 2024, the following warrants to purchase Common Stock were outstanding: 3,613,383 Private Warrants, 5,832,653 Firm Warrants and 15,000,000 RDO Common Warrants. The fair value of derivative warrant liabilities related to these warrants was $30.0 million.

The following table includes a summary of the derivative liabilities measured at fair value during the six months ended June 30, 2024 (in thousands):


	Fair Value
Ending Balance as of December 31, 2023	$	1,518
Change in fair value measurement		15,741
Issuance of Firm Warrants as part of the Bought Deal Offering and RDO Common Warrants as part of the Registered Direct Offering		12,746
Ending Balance as of June 30, 2024	$	30,005

Warrant Liability Measurement

The derivative warrant liability was valued using the Black-Scholes option pricing model, which is considered to be a Level 3 fair value measurement. The primary unobservable input utilized in determining the fair value of the warrant is the expected volatility of the Common Stock. The expected volatility assumption is based on historical volatilities of comparable companies whose share prices are publicly available as well as the implied volatility of the Public Warrants (as defined below), described in Note 9 of the Notes to consolidated financial statements in the Annual Report on Form 10-K. A summary of the inputs used in valuing the derivative warrant liabilities is as follows:


	Private Warrants			Firm Warrants			RDO Common Warrants
	June 30,			June 30,			June 30,
	2024			2024			2024
Equity value	$	1.93		$	1.93		$	1.93
Exercise price	$	11.50		$	1.70		$	1.10
Term, in years		3.36			4.68			4.82
Volatility		99.0	%		66.0	%		73.0	%
Risk-free rate		4.44	%		4.31	%		4.30	%
Dividend yield		0.0	%		0.0	%		0.0	%
Call option value	$	0.62		$	1.16		$	1.40


	Private Warrants
	December 31,
	2023
Equity value	$	1.59
Exercise price	$	11.50
Term, in years		3.61
Volatility		90.0	%
Risk-free rate		4.30	%
Dividend yield		0.0	%
Call option value	$	0.39

Contingent Consideration Related to SP-104 Acquisition

The Development Milestone Payment related to the SP-104 Assets represents an obligation to potentially settle a fixed value in a variable number of shares of Common Stock and requires remeasurement at fair value through settlement.

Upon the achievement of FDA approval for a new drug application for SP-104, the Company will transfer $3.0 million in cash or shares of Common Stock, at the discretion of the Company. The fair value of the contingent consideration liability associated with the Development Milestone Payment was estimated using a probability-weighted discounted cash flow method. Significant unobservable inputs assumptions included the likelihood of receiving FDA approval for SP-104, expected timing for receipt of FDA approval for SP-104, and a discount rate of 10.8%. As of June 30, 2024 and December 31, 2023, the fair value of contingent consideration related to the Development Milestone Payment was $0.2 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Net Loss Per Share - Schedule of the reconciliation of basic and diluted loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net loss for basic and diluted loss per share available to common stockholders	$ (37,582)	$ (26,649)	$ (61,959)	$ (57,402)
Weighted average number of shares outstanding	113,236,000	142,626,000	105,571,000	142,146,000
Weighted average common stock warrants exercisable for nominal consideration	6,952,000	0	5,878,000	0
Weighted average number of shares - basic	120,188	142,626	111,449	142,146
Weighted average number of shares, diluted	120,188	142,626	111,449	142,146
Loss per share, Basic	$ (0.31)	$ (0.19)	$ (0.56)	$ (0.4)
Loss per share, Diluted	$ (0.31)	$ (0.19)	$ (0.56)	$ (0.4)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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+ Details

Debt - Schedule of the Oramed Note (Details) - Senior Notes [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Beginning Balance as of January 1, 2024	$ 104,089
Change in fair value of Oramed Note	8,132
Repayment of Oramed Note	(35,000)
Ending Balance as of June 30, 2024	75,370
Instrument-specific Credit Risk [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Change in fair value of Oramed Note	$ (1,851)

Net Loss Per Share (Additional Information) (Details) - shares	Jun. 30, 2024	Jun. 18, 2024	Jun. 11, 2024	Dec. 31, 2023	Sep. 21, 2023
Common stock, shares issued	181,473,622	3,250,000	3,250,000	160,084,250
Warrant [Member]
Common stock, shares issued					8,500,000

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

As of June 30, 2024 and December 31, 2023, the Company had recorded goodwill of $13.5 million. No goodwill impairment was recognized for the six months ended June 30, 2024 and 2023.

Amortization of the intangible assets that have finite useful lives is generally recorded on a straight-line basis over their useful lives. A summary of the Company’s identifiable intangible assets as of June 30, 2024 and December 31, 2023 is as follows (in thousands):


	June 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Intangibles, net
Patent rights	$	32,630	$	16,681	$	15,949
Acquired technology		21,940		8,411		13,529
Acquired licenses		5,711		733		4,978
Assembled workforce		500		500		—
Total intangible assets	$	60,781	$	26,325	$	34,456


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Intangibles, net
Patent rights	$	32,630	$	15,591	$	17,039
Acquired technology		21,940		7,679		14,261
Acquired licenses		5,711		551		5,160
Assembled workforce		500		475		25
Total intangible assets	$	60,781	$	24,296	$	36,485

As of June 30, 2024, the weighted average remaining life for identifiable intangible assets was 9.0 years. Aggregate amortization expense was $1.0 million and $2.0 million for the three and six months ended June 30, 2024. Aggregate amortization expense was $1.0 million and $2.1 million for the three and six months ended June 30, 2023, respectively.

Estimated future amortization expense related to intangible assets as of June 30, 2024 is as follows (in thousands):


	Amount
2024 (remainder of 2024)	$	2,002
2025		4,006
2026		4,006
2027		4,006
2028		4,006
Thereafter		16,430
Total	$	34,456

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 09, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Securities Act File Number	001-39852
Entity Central Index Key	0001820190
Entity Tax Identification Number	92-1062542
Entity Registrant Name	Scilex Holding Company
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	960 San Antonio Road
Entity Address, City or Town	Palo Alto
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94303
City Area Code	650
Local Phone Number	516-4310
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	SCLX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		191,790,520

Goodwill and Intangible Assets - Estimated future amortization expense of intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
As of March 31,2023
2024 (remainder of 2024)	$ 2,002
2025	4,006
2026	4,006
2027	4,006
2028	4,006
Thereafter	16,430
Total	$ 34,456	$ 36,485

Shareholders' Equity (Additional Information) (Details) - USD ($)						6 Months Ended
	Apr. 23, 2024	Feb. 29, 2024	Dec. 12, 2023	Sep. 21, 2023	Nov. 17, 2022	Jun. 30, 2024	Jun. 18, 2024	Jun. 11, 2024	Dec. 31, 2023
Shareholders' Equity (Details) [Line Items]
Common stock, shares issued						181,473,622	3,250,000	3,250,000	160,084,250
Share price						$ 18
Additional paid-in capital						$ 426,165,000			$ 407,813,000
Warrants outstanding						6,854,309			6,854,309
Clearing expenses	$ 15,950,000
Combined Price Paid Of Warrant		$ 1.564
Preferred stock, shares outstanding						29,057,097			29,057,097
Treasury Stock Common Shares Outstanding						60,068,585			60,068,585
Shares issued, shares						250,000
Senior Notes [Member]
Shareholders' Equity (Details) [Line Items]
Legal fees and expenses				$ 12,300,000
Closing Penny Warrant [Member] \| Senior Notes [Member]
Shareholders' Equity (Details) [Line Items]
Issue of Warrants to Purchase Shares		882,352
Placement Agent Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Warrants outstanding						1,200,000
Legal fees and expenses	$ 100,000
Cash fee percentage of gross proceeds paid to placement agents	8.00%
Common Stock [Member] \| Placement Agent Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Percent of Total Number of Shares Issued to Agents in the Offering	8.00%
Preferred Stock Member
Shareholders' Equity (Details) [Line Items]
Preferred stock, shares outstanding						29,057,097			29,057,097
Rodman & Renshaw LLC [Member]
Shareholders' Equity (Details) [Line Items]
Public Offering Price		$ 1.7
Exercise Price Of Common Warrant		$ 1.7
Purchase Of Common Warrants		5,882,353
Common stock sold		5,882,353
A R Yorkville Purchase Agreement [Member]
Shareholders' Equity (Details) [Line Items]
Common stock, shares issued						632,431
Purchase of stock, percentage						98.00%
Common stock sold						96,982
Proceeds from sale of common stock						$ 200,000
Right to sell maximum number of common stock shares					$ 500,000,000	$ 500,000,000
A R Yorkville Purchase Agreement [Member] \| Common Stock [Member]
Shareholders' Equity (Details) [Line Items]
Shares issued, shares						250,000
B. Riley Purchase Agreement [Member]
Shareholders' Equity (Details) [Line Items]
Common stock, shares issued						250,000
Purchase of stock, percentage						98.00%
Right to sell maximum number of common stock shares					$ 500,000,000
At-the-Market Sales Agreement [Member]
Shareholders' Equity (Details) [Line Items]
Number sale of common stock shares			170,000,000
Proceed s of sale of common shares percentage						3.00%
Common stock sold						92,295
Proceeds from sale of common stock						$ 100,000
Securities Purchase Agreement [Member] \| Common Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	15,000,000
Securities Purchase Agreement [Member] \| Common Stock [Member] \| Common Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Price per share (in Dollars per share)	$ 1
Maximum [Member] \| At-the-Market Sales Agreement [Member]
Shareholders' Equity (Details) [Line Items]
Number sale of common stock shares			170,000,000
Other Noncurrent Liabilities [Member] \| Placement Agent Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Additional paid-in capital						$ 600,000
Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Exercise price per share, warrants		$ 2.125
Common stock shares reserved for future issuance		470,588
Public Offering Price Combined		125.00%
Purchase Of Common Warrants		882,352
Warrants [Member] \| Warrant Transfer Agreement [Member]
Shareholders' Equity (Details) [Line Items]
Exercise price per share, warrants						$ 0.01
Warrants outstanding						3,613,383			3,613,383
Public Warrants Purchase Common Stock[Member]
Shareholders' Equity (Details) [Line Items]
Exercise price per share, warrants						$ 11.5
Representative Warrants Outstanding[Member]
Shareholders' Equity (Details) [Line Items]
Warrants outstanding						470,588
Representative Warrants Outstanding[Member] \| Other Noncurrent Liabilities [Member]
Shareholders' Equity (Details) [Line Items]
Additional paid-in capital						$ 300,000
Firm Warrants[Member]
Shareholders' Equity (Details) [Line Items]
Warrants outstanding						5,832,653
Registered Direct Offering [Member]
Shareholders' Equity (Details) [Line Items]
Warrants outstanding						15,000,000
Exercise Price Of Common Warrant	$ 1.1
Registered Direct Offering [Member] \| Placement Agent Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Percent of Combined Offering Exercise Price Per Share	125.00%
Exercise Price Of Common Warrant	$ 1.25
Registered Direct Offering [Member] \| Common Stock [Member] \| Placement Agent Warrants [Member]
Shareholders' Equity (Details) [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,200,000
Registered Direct Offering [Member] \| Securities Purchase Agreement [Member]
Shareholders' Equity (Details) [Line Items]
Aggregate Gross Proceeds From Offering	$ 15,000,000
Registered Direct Offering [Member] \| Securities Purchase Agreement [Member] \| Common Stock [Member]
Shareholders' Equity (Details) [Line Items]
Shares issued, shares	15,000,000
Treasury Stock [Member]
Shareholders' Equity (Details) [Line Items]
Treasury Stock Common Shares Outstanding						60,068,585			60,068,585

Condensed Consolidated Statements of Stockholders' Equity / (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock Member	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Treasury Stock
Balance at Dec. 31, 2022	$ 36,239	$ 3	$ 14	$ 412,136		$ (375,914)	$ 0
Balance (in shares) at Dec. 31, 2022		29,057	141,349				0
Shares issued under Standby Equity Purchase Agreements	1,869			1,869
Shares issued under Standby Equity Purchase Agreements (in shares)			462
Retainer shares issued	1		$ 1
Retainer shares issued (in shares)			4,000
Stock-based compensation	3,720			3,720
Net income (loss)	(30,753)					(30,753)
Balance at Mar. 31, 2023	11,076	$ 3	$ 15	417,725		(406,667)	$ 0
Balance (in shares) at Mar. 31, 2023		29,057	145,811				0
Balance at Dec. 31, 2022	36,239	$ 3	$ 14	412,136		(375,914)	$ 0
Balance (in shares) at Dec. 31, 2022		29,057	141,349				0
Other comprehensive income	0
Balance at Jun. 30, 2023	10,417	$ 3	$ 15	443,715		(433,316)	$ 0
Balance (in shares) at Jun. 30, 2023		29,057	148,700				0
Balance at Mar. 31, 2023	11,076	$ 3	$ 15	417,725		(406,667)	$ 0
Balance (in shares) at Mar. 31, 2023		29,057	145,811				0
Shares issued under Standby Equity Purchase Agreements	13,925			13,925
Shares issued under Standby Equity Purchase Agreements (in shares)			2,084
Stock options exercised	222			222
Stock options exercised (in shares)			128
Conversion of Convertible Debentures into common stock, shares			632
Conversion of Convertible Debentures into common stock	7,735			7,735
Issuance of common stock upon warrants exercise, shares			45
Issuance of common stock upon warrants exercise	521			521
Stock-based compensation	3,587			3,587
Other comprehensive income	0
Net income (loss)	(26,649)					(26,649)
Balance at Jun. 30, 2023	10,417	$ 3	$ 15	443,715		(433,316)	$ 0
Balance (in shares) at Jun. 30, 2023		29,057	148,700				0
Balance at Dec. 31, 2023	(172,938)		$ 16	407,813		(490,245)	$ (90,522)
Balance (in shares) at Dec. 31, 2023		29,057	160,084				60,069
Shares issued under Standby Equity Purchase Agreements and under ATM Sales Agreement, Share			189
Shares issued under Bought Deal Offering			5,882
Shares issued under Bought Deal Offering	3,769		$ 1	3,768		0
Shares issued under Standby Equity Purchase Agreements and under ATM Sales Agreement, Value	156			156
Stock options exercised	46			46
Stock options exercised (in shares)			35
Stock-based compensation	3,558			3,558
Net income (loss)	(24,377)					(24,377)
Balance at Mar. 31, 2024	(189,786)		$ 17	415,341		(514,622)	$ (90,522)
Balance (in shares) at Mar. 31, 2024		29,057	166,190				60,069
Balance at Dec. 31, 2023	$ (172,938)		$ 16	407,813		(490,245)	$ (90,522)
Balance (in shares) at Dec. 31, 2023		29,057	160,084				60,069
Stock options exercised (in shares)	101
Other comprehensive income	$ 1,851
Balance at Jun. 30, 2024	(214,692)		$ 18	426,165	$ 1,851	(552,204)	$ (90,522)
Balance (in shares) at Jun. 30, 2024		29,057	181,474				60,069
Balance at Mar. 31, 2024	(189,786)		$ 17	415,341		(514,622)	$ (90,522)
Balance (in shares) at Mar. 31, 2024		29,057	166,190				60,069
Shares issued under Registered Direct Offering, shares			15,000
Shares issued under Registered Direct Offering	5,919		$ 1	5,918
Placement Agent Warrants issued in connection with Registered Direct Offering and Representative Warrants issued in connection with Bought Deal Offering	956			956
Shares issued under ESPP, shares			167
Shares issued under ESPP	154			154
Stock options exercised	99			99
Stock options exercised (in shares)			67
Issuance of common stock upon warrants exercise, shares			50
Issuance of common stock upon warrants exercise	84			84
Stock-based compensation	3,613			3,613
Other comprehensive income	1,851				1,851
Net income (loss)	(37,582)					(37,582)
Balance at Jun. 30, 2024	$ (214,692)		$ 18	$ 426,165	$ 1,851	$ (552,204)	$ (90,522)
Balance (in shares) at Jun. 30, 2024		29,057	181,474				60,069

Balance Sheet Components (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and equipment

Property and equipment, net consists of the following (in thousands):


	June 30,			December 31,
	2024			2023
Construction in progress	$	689		$	689
Furniture		5			5
Computers and equipment		9			36
Leasehold improvements		50			50
Property and equipment, gross		753			780
Less: Accumulated depreciation		(39	)		(58	)
Property and equipment, net	$	714		$	722

Schedule of Accrued Expenses

Accrued expenses consists of the following (in thousands):


	June 30,		December 31,
	2024		2023
Accrued professional service fees	$	4,379	$	2,029
Accrued sales and marketing costs		1,473		1,601
Accrued tax payable		1,471		1,452
Accrued research and development costs		362		1,546
Accrued litigation expenses		-		500
Accrued others		303		280
Accrued expenses	$	7,988	$	7,408

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Product Development Agreement

In February 2013, Scilex Pharma became a party to a product development agreement (as amended, the “Product Development Agreement”) with Itochu and Oishi Koseido Co., Ltd. (“Oishi,” and together with Itochu, the “Developers”), pursuant to which the Developers will manufacture and supply lidocaine tape products, including ZTlido and SP-103 (the “Products”), for Scilex Pharma. The Developers initially developed and have intellectual

property rights relating to the Products. Pursuant to the Product Development Agreement, Scilex Pharma acquired an exclusive right to develop and commercialize the Products worldwide except for Japan. The Developers are responsible for sourcing and supplying lidocaine for development and commercialization purposes.

Pursuant to the Product Development Agreement, Scilex Pharma is required to make aggregate royalty payments between 25% and 35% to the Developers based on net profits. For the six months ended June 30, 2024 and 2023, Scilex Pharma made royalty payments in the amount of $4.4 million and $4.3 million, respectively. As of June 30, 2024 and December 31, 2023, Scilex Pharma had ending balances of accrued royalty payables of $4.7 million and $2.4 million, respectively. Total royalty expense recorded within cost of revenue was $2.4 million and $2.3 million for the three months ended June 30, 2024 and 2023, respectively, and $4.7 million and $4.3 million for the six months ended June 30, 2024 and 2023, respectively. Net profits are defined as net sales, less cost of goods and marketing expenses. Net sales are defined as total gross sales of any Product, less all applicable deductions, to the extent accrued, paid or allowed in the ordinary course of business with respect to the sale of such Product, and to the extent that they are in accordance with GAAP. If Scilex Pharma were to sublicense the licensed technologies, the Developers will receive the same proportion of any sublicensing fees received therefrom. The Product Development Agreement will continue in full force and effect until October 2, 2028, the date that is ten years from the date of the first commercial sale of ZTlido. The Product Development Agreement will renew automatically for subsequent successive one-year renewal periods unless Scilex Pharma or the Developers terminate it upon 6-month written notice.

On February 16, 2017, Scilex Pharma entered into a Commercial Supply Agreement (as amended, the “Supply Agreement”) with the two Developers to provide commercial supply of ZTlido and SP-103 to Scilex Pharma. The Supply Agreement contains standard terms regarding term, termination, payment, product quality and supply. In addition, the agreement provides additional terms regarding the calculation and amount of marketing expenses that may be deducted from net sales for purposes of determining the amount of net profit under the Product Development Agreement.

Litigation

In the normal course of business, the Company may be named as a defendant in one or more lawsuits. Other than the following four lawsuits, the Company is not a party to any outstanding material litigation and management is not aware of any legal proceedings that, individually or in the aggregate, are deemed to be material to the Company’s financial condition or results of operations.

From time to time the Company may become involved in various legal proceedings, including those that may arise in the ordinary course of business.

Sanofi-Aventis U.S. LLC and Hisamitsu America, Inc. Litigation

On February 23, 2021, the Company filed an action (the “Action”) in the U.S. District Court for the Northern District of California against Sanofi-Aventis U.S. LLC and Hisamitsu America, Inc., two manufacturers of over-the-counter (“OTC”) lidocaine patch products, alleging, among other things, false and deceptive advertising and unfair competition under the Lanham Act and California state laws by those companies regarding their respective OTC patch products (the “Sanofi-Aventis & Hisamitsu Litigation”). This lawsuit sought, among other relief, damages and an injunction enjoining the defendants from continuing to make false or misleading statements of fact about their respective OTC lidocaine patch products. The defendants filed motions to dismiss, which narrowed slightly the Company’s claims, but which motions the court largely rejected. Discovery proceeded. On January 26 and February 2, 2024, Scilex Pharma entered into two separate settlement agreements and mutual releases with the two manufacturers that resolved the Action. The terms of those agreements are confidential.

Former Employee Action

On March 12, 2021, Scilex Pharma and Sorrento (the “Plaintiffs”) filed an action (the “Former Employee Action”) in the Delaware Court of Chancery against the former President of Scilex Pharma, Anthony Mack, and Virpax Pharmaceuticals, Inc. (“Virpax”, and together with Mr. Mack, the “Defendants”), a company founded and then headed by Mr. Mack, alleging, among other things, breach by Mr. Mack of a restrictive covenant agreement with Sorrento related to his sale of his Scilex Pharma stock to Sorrento, tortious interference with that agreement by Virpax, breach of Mr. Mack’s fiduciary duties to Scilex Pharma, aiding and abetting of that breach by Virpax, and misappropriation of Scilex Pharma’s trade secrets by Mr. Mack and Virpax. Such lawsuit sought, among other relief, damages and various forms of injunctive relief. The case was tried from September 12, 2022 to September 14, 2022. On September 1, 2023, the court found in favor of the Plaintiffs on all but three counts deemed to have been waived. In its 95-page opinion, the court instructed the parties to submit supplemental briefing on the appropriate remedy to implement its rulings. On October 18, 2023, the Plaintiffs submitted a supplemental brief on remedies. On November 29, 2023, Defendants submitted a supplemental brief on remedies. On December 21, 2023, the Plaintiffs submitted a supplemental reply brief on remedies. On February 26, 2024, the Company and Virpax entered into a term sheet regarding a mutual release and settlement agreement, pursuant to which the parties have agreed to resolve the ongoing disputes. On February 29, 2024, the Company and Virpax entered into a definitive settlement agreement, which provides for, among other things, that Virpax would be obligated to make the following payments to the Company to settle the Former Employee Action: (i) $3.5 million (the “Initial Payment”) by two business days after the Effective Date (as defined therein), which payment has been made; (ii) $2.5 million by July 1, 2024 which payment has been made on July 8, 2024; and (iii) to the extent any of the following drug candidates are ever sold, royalty payments of (a) 6% of annual Net Sales (as defined therein) of Epoladerm, (b) 6% of annual Net Sales of Probudur and (c) 6% of annual Net Sales of Envelta during the Royalty Term (as defined therein). The Company and Virpax provided mutual releases of all claims that existed as of the Effective Date, whether known or unknown, arising from any allegations set forth in the Former Employee Action. Plaintiffs’ release relates to claims against Virpax only, which does not affect its claims against Mr. Mack. Plaintiffs have not released Mr. Mack, and litigation against him remains ongoing.

As of June 30, 2024, the Company fully reserved the $2.5 million receivable to be paid by Virpax by July 1, 2024, as the collectability of this receivable was deemed uncertain. The Company received the full payment of $2.5 million on July 8, 2024.

ZTlido Patent Litigation

On June 22, 2022, the Company filed a complaint against Aveva Drug Delivery Systems, Inc. (“Aveva”), Apotex Corp., and Apotex, Inc. (together, “Apotex”) in the U.S. District Court for the Southern District of Florida (the “ZTlido Patent Litigation”) alleging infringement of certain Orange Book listed patents covering ZTlido (the “ZTlido Patents”). The ZTlido Patent Litigation was initiated following the submission by Apotex, in accordance with the procedures set out in the Hatch-Waxman Act, of an abbreviated new drug application (“ANDA”). Apotex’s ANDA seeks approval to market a generic version of ZTlido prior to the expiration of the ZTlido Patents and alleges that the ZTlido Patents are invalid, unenforceable, and/or not infringed. The Company is seeking, among other relief, an order that the effective date of any FDA approval of Apotex’s ANDA be no earlier than the expiration of the asserted patents listed in the Orange Book, the latest of which expires on May 10, 2031, and such further and other relief as the court may deem appropriate. Apotex is subject to a 30-month stay preventing it from selling a generic version of ZTlido during that time. The stay should expire no earlier than November 11, 2024. The two Apotex entities were recently dismissed from the litigation without prejudice, as they no longer have an interest in the generic product that Aveva seeks to market. Trial in the ZTlido Patent Litigation was held from July 8, 2024 to July 11, 2024. Final post-trial briefing was submitted by the parties on July 25, 2024, and the case has been submitted to the U.S. District Court for the Southern District of Florida. The Company cannot make any predictions about the final outcome of this matter or the timing thereof.

GLOPERBA Patent Litigation

On November 6, 2023, Takeda Pharmaceuticals U.S.A., Inc. (“Takeda”) filed a complaint against the Company in the U.S. District Court for the District of Delaware (the “GLOPERBA Patent Litigation”) alleging that the Company’s filing with the FDA of an application for approval of a proposed revision to the product label for its GLOPERBA product infringed certain Orange Book listed patents covering Takeda’s colchicine product, Colcrys® (the “Colcrys Patents”). Takeda sought an order that the effective date of any FDA approval of the Company’s labeling revision be

no earlier than the expiration date of the asserted patents listed in the Orange Book, and such further and other relief as the court may deem appropriate. The Company had previously accrued $0.5 million with respect to the GLOPERBA Patent Litigation. On March 7, 2024, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with Takeda to resolve the Action and entered into a license agreement with Takeda pursuant to which Takeda granted a non-exclusive license to the Company and its affiliates of certain patents owned by Takeda. The terms of those agreements are confidential. The Settlement Agreement was subject to review by the Federal Trade Commission and the U.S. Department of Justice, neither of which objected during the review period. After the expiration of the review period, the U.S. District Court for the District of Delaware entered a final consent judgment on May 3, 2024.

Operating Leases

The Company leases administrative and research and development facilities under various non-cancelable lease agreements. Facility leases generally provide for periodic rent increases and may include options to extend. As of June 30, 2024, the Company’s leases have remaining lease terms of approximately 0.2 to 3.3 years. The terms of the Company’s leases, ranging from 3 to 5 years, include extension options that are not reasonably certain to be exercised. Many of the Company’s leases are subject to variable lease payments. Variable lease payments are recognized in the period in which the obligations for those payments are incurred, are not included in the measurement of the right-of-use (“ROU”) assets or lease liabilities, and are immaterial. Additionally, the Company subleases certain properties to third parties. Sublease income is recognized on a straight-line basis and is immaterial.

As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company calculates the associated lease liability and corresponding ROU asset upon lease commencement using a discount rate based on a credit-adjusted secured borrowing rate commensurate with the term of the lease. As of June 30, 2024, the Company has no finance leases.

In April 2023, the Company modified the lease term for its principal executive offices located in Palo Alto, California. The modification extended the lease term for an additional three years, with the lease term expiring in September 2027. As a result of the modification, the Company recognized additional ROU assets and corresponding lease liabilities of $2.5 million.

Lease expense was $0.3 million for each of the three months ended June 30, 2024 and 2023, and $0.5 million for each of the six months ended June 30, 2024 and 2023. The lease expense included variable lease costs, sublease income and impairment, which were immaterial for the periods presented.

Supplemental quantitative information related to leases includes the following:


	Six Months Ended June 30,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (in thousands)	$	(278	)	$	(474	)
Weighted average remaining lease term in years — operating leases		3.2			4.0
Weighted average discount rate — operating leases		11.0	%		11.1	%

Approximate future minimum lease payments under operating leases were as follows (in thousands):


	Amount
2024 (Remainder of 2024)	$	425
2025		916
2026		944
2027		724
Total lease payments		3,009
Less imputed interest		(415	)
Total lease liabilities		2,594
Less current portion of lease liability		701
Lease liability, net of current portion	$	1,893

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Leases Supplemental Quantitative Information

Supplemental quantitative information related to leases includes the following:


	Six Months Ended June 30,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (in thousands)	$	(278	)	$	(474	)
Weighted average remaining lease term in years — operating leases		3.2			4.0
Weighted average discount rate — operating leases		11.0	%		11.1	%

Schedule of Lease Maturities of Lease Liabilities

Approximate future minimum lease payments under operating leases were as follows (in thousands):


	Amount
2024 (Remainder of 2024)	$	425
2025		916
2026		944
2027		724
Total lease payments		3,009
Less imputed interest		(415	)
Total lease liabilities		2,594
Less current portion of lease liability		701
Lease liability, net of current portion	$	1,893

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of identifiable intangible assets

A summary of the Company’s identifiable intangible assets as of June 30, 2024 and December 31, 2023 is as follows (in thousands):


	June 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Intangibles, net
Patent rights	$	32,630	$	16,681	$	15,949
Acquired technology		21,940		8,411		13,529
Acquired licenses		5,711		733		4,978
Assembled workforce		500		500		—
Total intangible assets	$	60,781	$	26,325	$	34,456


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Intangibles, net
Patent rights	$	32,630	$	15,591	$	17,039
Acquired technology		21,940		7,679		14,261
Acquired licenses		5,711		551		5,160
Assembled workforce		500		475		25
Total intangible assets	$	60,781	$	24,296	$	36,485

Estimated future amortization expense related to intangible assets

Estimated future amortization expense related to intangible assets as of June 30, 2024 is as follows (in thousands):


	Amount
2024 (remainder of 2024)	$	2,002
2025		4,006
2026		4,006
2027		4,006
2028		4,006
Thereafter		16,430
Total	$	34,456

Fair Value Measurements (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Apr. 30, 2023	Sep. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Feb. 29, 2024
Subsidiary, Sale of Stock [Line Items]
Note discount rate						3027.00%
Principle amount of issued debt		$ 25,000
Warrants outstanding	6,854,309			6,854,309		6,854,309		6,854,309
Loss on derivative liability				$ 15,284	$ 82	$ 15,741	$ 5,335
Common stock upon conversation of cash						$ 3,000
Discount rate of FDA	10.80%			10.80%		10.80%
Development Milestone Payment						$ 200		$ 200
Derivative warrant liabilities						30,000
Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Loss on derivative liability				$ 15,300	$ 100	15,700	$ 5,300
Price per share									$ 2.125
Oramed Note
Subsidiary, Sale of Stock [Line Items]
Estimated fair value	$ 75,400			75,400		75,400
Principle amount of issued debt	10,000		$ 101,900
Change in fair value due to credit risk				1,900		1,900
Change in fair value of debt and liability instruments				4,300		8,100
FSF Deposit
Subsidiary, Sale of Stock [Line Items]
Estimated fair value	$ 11,700			11,700		$ 11,700
Note discount rate						3566.00%
Change in fair value of debt and liability instruments				$ 1,700		$ 1,700
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants outstanding	3,613,383			3,613,383		3,613,383
Firm Warrants[Member]
Subsidiary, Sale of Stock [Line Items]
Warrants outstanding	5,832,653			5,832,653		5,832,653
RDO Common Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants outstanding	15,000,000			15,000,000		15,000,000
Representative Warrants Outstanding[Member]
Subsidiary, Sale of Stock [Line Items]
Warrants outstanding	470,588			470,588		470,588
Warrant Transfer Agreement [Member] \| Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants outstanding	3,613,383			3,613,383		3,613,383		3,613,383
Price per share	$ 0.01			$ 0.01		$ 0.01

Fair Value Measurements (Details) - Schedule Of The Derivative Liabilities Measured at Fair Value $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Fair Value Disclosures [Abstract]
Fair value, beginning	$ 1,518
Fair value, ending	30,005
Level 3 [Member]
Fair Value Disclosures [Abstract]
Fair value, beginning	1,518
Change in fair value measurement	15,741
Issuance of Firm Warrants as part of the Bought Deal Offering and RDO Common Warrants as part of the Registered Direct Offering	12,746
Fair value, ending	$ 30,005

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes liabilities not subject to a master netting arrangement and not elected to be offset.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

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+ Details

Nature of Operations and Basis of Presentation (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Description of Organization and Business Operations (Details) [Line Items]
Receivables	$ 3.2	$ 3.2
Convertible Debt [Member]
Description of Organization and Business Operations (Details) [Line Items]
Debt, Weighted Average Interest Rate	13.56%	13.56%		13.55%
Customer Concentration Risk [Member]
Description of Organization and Business Operations (Details) [Line Items]
Percentage of net revenue, sole distributor	10.00%	10.00%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Three Customers [Member]
Description of Organization and Business Operations (Details) [Line Items]
Concentration risk, percentage	87.00%	86.00%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Minimum [Member] \| Three Customers [Member]
Description of Organization and Business Operations (Details) [Line Items]
Concentration risk, percentage	16.00%	11.00%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Maximum [Member] \| Three Customers [Member]
Description of Organization and Business Operations (Details) [Line Items]
Concentration risk, percentage	27.00%	28.00%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Three Customers [Member]
Description of Organization and Business Operations (Details) [Line Items]
Concentration risk, percentage		94.00%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Minimum [Member] \| Three Customers [Member]
Description of Organization and Business Operations (Details) [Line Items]
Concentration risk, percentage		17.00%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Maximum [Member] \| Three Customers [Member]
Description of Organization and Business Operations (Details) [Line Items]
Concentration risk, percentage			27.00%

Junior DIP Facility and Sorrento Share Purchase Agreement

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Junior DIP Facility and Sorrento Share Purchase Agreement

8. Junior DIP Facility and Sorrento Stock Purchase Agreement

Junior DIP Facility

In July 2023, the Company entered into an agreement to provide Sorrento with a non-amortizing super-priority junior secured term loan facility (“Junior DIP Facility”) in an aggregate principal amount of $20.0 million (the “Junior DIP Loan Agreement”), which was funded in the same month. The Junior DIP Facility bears interest at a per annum rate of 12.00% payable in kind on the first day of each month in arrears and on the DIP Termination Date (as defined in the Junior DIP Loan Agreement). Upon repayment or satisfaction of the DIP Loans (as defined in the Junior DIP Loan Agreement) in whole or in part, Sorrento is required to pay to the Company in cash an exit fee equal to 2.00% of the aggregate principal amount of the Junior DIP Facility. The Junior DIP Facility was to mature on the earliest of: (i) September 30, 2023; (ii) the effective date of any Chapter 11 plan of reorganization with respect to Sorrento; (iii) the consummation of any sale or other disposition of all or substantially all of the assets of Sorrento; (iv) the date of the acceleration of the DIP Loans and the termination of the DIP Commitments (as defined in the Junior DIP Loan Agreement) in accordance with the DIP Documents (as defined in the Junior DIP Loan Agreement); and (v) dismissal of the Chapter 11 Cases or conversion of the Chapter 11 Cases into cases under Chapter 7 of the Bankruptcy Code.

On September 21, 2023, Sorrento’s obligations under the Junior DIP Facility were waived and deemed to be fully settled in conjunction with the Sorrento SPA. Consequently, the transfer of funds associated with the Junior DIP Facility was deemed and accounted for as a capital distribution to Sorrento.

Sorrento Stock Purchase Agreement

On September 21, 2023, the Company entered into the Sorrento SPA pursuant to which the Company purchased from Sorrento (i) 60,068,585 shares of Common Stock, (ii) 29,057,097 shares of Series A Preferred Stock, par value $0.0001 per share, of the Company (the “Preferred Stock”) and (iii) 1,386,617 Public Warrants (as defined below) and 3,104,000 Private Warrants (collectively, the “Purchased Securities”). On the same day, the Company and Oramed entered into the Scilex-Oramed SPA. The Company concluded that the Sorrento SPA and the Scilex-Oramed SPA

were entered in contemplation of each other and the issuance of the Oramed Note was accounted as part of the consideration payable for the Purchased Securities acquired from Sorrento.

Pursuant to the terms of the Scilex-Oramed SPA, the Company issued the Oramed Note (see Note 7), which replaced Sorrento’s outstanding obligations to Oramed, warrants to purchase up to an aggregate of 4,500,000 shares of Common Stock (the “Closing Penny Warrant”) with an exercise price of $0.01 per share and restrictions on exercisability, and warrants to purchase up to an aggregate of 8,500,000 shares of Common Stock (the “Subsequent Penny Warrants” and together with the Closing Penny Warrant, the “Penny Warrants”), each with an exercise price of $0.01 per share and each with restrictions on exercisability. Additionally, the Company agreed to transfer to Oramed 4,000,000 SPAC Warrants (as defined below), which were acquired by the Company under the Sorrento SPA. There was no change in the terms for the warrants transferred to Oramed as a result of the transactions described above. The remaining consideration for the Purchased Securities was comprised of a credit bid for all amounts of principal and accrued but unpaid interest outstanding under the Junior DIP Facility, a $10.0 million cash payment, and the assumption and assignment of certain obligations of Sorrento for legal fees and expenses amounting to approximately $12.3 million.

The Company allocated the total consideration between the repurchased instruments by allocating to the repurchased Private Warrants their full value, with the remaining consideration allocated to the Common Stock, Preferred Stock, and Public Warrants (as defined below) based on their relative fair values as of September 21, 2023.

Before the closing of the Sorrento SPA transactions and in connection with the transactions contemplated by the Sorrento SPA, the Company formed two entities: (a) Scilex DRE Holdings LLC (“Holdco”), a single purpose entity that is the Company’s direct wholly owned subsidiary and (b) Scilex Stock Acquisition Joint Venture LLC, a single purpose bankruptcy-remote entity that is the Company’s indirect wholly owned subsidiary (“SCLX JV”), which was formed to hold the Purchased Securities. Holdco was formed to hold all of the equity interests in SCLX JV. Holdco and SCLX JV are parties to the Security Agreement and Subsidiary Guarantee (see Note 7).

Preferred Stock

Pursuant to the terms of the Sorrento SPA, the Company repurchased all of the outstanding Preferred Stock. The Preferred Stock is classified in equity and does not have any bifurcated features. Therefore, the repurchase of the Preferred Stock by the Company is treated as a redemption of shares and viewed as a deemed dividend. The fair value of Preferred Stock as of the repurchase date of September 21, 2023 was $52.6 million. The Company derecognized the carrying value of the Preferred Stock, with any excess amount allocated as the reduction in additional paid-in capital. The Preferred Stock is currently held as collateral for the Oramed Note.

Treasury Stock

The Common Stock that has been repurchased by the Company under the Sorrento SPA is not intended for constructive retirement, and is being held as collateral for the Oramed Note. In accordance with treasury stock accounting guidance, the consideration allocated to Common Stock is presented under a separate caption of Treasury Stock as a reduction of equity.

Penny Warrants

The Closing Penny Warrant will be exercisable upon the earliest of (i) March 14, 2025, (ii) the date on which the Oramed Note has been repaid in full and (iii) the Management Sale Trigger Date (as defined therein), if any, and will expire on the date that is the fifth anniversary of the issuance date.

The Company issued four Subsequent Penny Warrants, each for 2,125,000 shares of Common Stock, one of which shall vest and become exercisable on the date that is the later of (i) each of March 19, 2024, June 17, 2024, September 15, 2024 or December 14, 2024 (the “Subsequent Penny Warrant Vesting Date”) and (ii) the earliest of (A) March 14, 2025, (B) the date on which the Oramed Note has been repaid in full and (C) the Management Sale Trigger Date (as defined therein), if any. Each Subsequent Penny Warrant will expire on the date that is the fifth anniversary of the issuance date; provided that, if the Oramed Note is repaid in full prior to the Subsequent Penny Warrant Vesting Date applicable to such Subsequent Penny Warrant, such Subsequent Penny Warrant will expire on the date the Oramed Note is repaid in full.

The exercise price of the Penny Warrants is $0.01 per share, subject to adjustments provided therein. The exercise price and number of shares of Common Stock issuable upon the exercise of the Penny Warrants will be subject to adjustment in the event of any stock dividend, stock split, recapitalization, reorganization or similar transaction, as described in the Penny Warrants; provided that there shall not be any adjustment to the exercise price of the Penny Warrants in the event the Company combines (by combination, reverse stock split or otherwise) its Common Stock into a smaller number of shares. Oramed may exercise the Penny Warrants by means of a “cashless exercise.” The Closing Penny Warrant and the Subsequent Penny Warrants utilize the same form of warrant.

The Penny Warrants may not be exercised if Oramed, together with its affiliates, would beneficially own in excess of 9.9% of the number of shares of Common Stock outstanding immediately after giving effect to such exercise (the “Oramed Beneficial Ownership Limitation”); provided, however, that upon 61 days’ prior notice to the Company, Oramed may increase or decrease the Oramed Beneficial Ownership Limitation.

The Company accounted for the Penny Warrants as an equity classified instrument as they are indexed to the Company’s own stock and meet the conditions to be classified in equity under FASB ASC 815, Derivatives and Hedging, including sufficient available shares of Common Stock for the Company to settle the exercise of the warrants in shares of Common Stock. The Penny Warrants are recognized in additional paid-in capital in the Company’s consolidated balance sheets. The fair value of Penny Warrants as of September 21, 2023, the date of issuance, was $10.4 million.

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, which is recorded as accrued expenses under current liabilities on the unaudited condensed consolidated balance sheets. The excise tax will be adjusted based on any new guidance that the IRS may release.

Stock Incentive and Employee Benefit Plans - Schedule of Stock Options Outstanding Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Options Outstanding, Beginning Balance \| shares	33,124
Options Outstanding, Granted \| shares	1,472
Options Outstanding, Exercised \| shares	(101)
Options Outstanding, Forfeited/Cancelled \| shares	(121)
Options Outstanding, Ending Balance \| shares	34,374	33,124
Options Outstanding, Exercisable \| shares	21,380
Weighted Average Exercise Price, Outstanding, Beginning Balance \| $ / shares	$ 4.38
Weighted Average Exercise Price, Granted \| $ / shares	0.99
Weighted Average Exercise Price, Exercised \| $ / shares	1.43
Weighted Average Exercise Price, Forfeited/Cancelled \| $ / shares	4.97
Weighted Average Exercise Price, Outstanding, Ending Balance \| $ / shares	4.24	$ 4.38
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 3.17
Outstanding, Weighted-average Remaining Contractual Life, (in Years)	7 years 1 month 6 days	7 years 6 months
Exercisable, Weighted-average Remaining Contractual Life, (in Years)	6 years 1 month 6 days
Aggregate Intrinsic Value, Outstanding \| $	$ 6,662	$ 7,459
Aggregate Intrinsic Value, Exercisable \| $	$ 4,102

Nature of Operations and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2024

Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents


	As of June 30, 2024		As of December 31, 2023
Cash and cash equivalents	$	6,888	$	3,921
Restricted cash		2,778		808
Total cash, cash equivalents, and restricted cash	$	9,666	$	4,729

Goodwill and Intangible Assets (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 13,481		$ 13,481		$ 13,481
Goodwill impairment charges			$ 0	$ 0
Weighted average remaining life for identifiable intangible assets			9 years
Amortization expense	$ 1,001	$ 1,026	$ 2,028	$ 2,053

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of the reconciliation of basic and diluted loss per share

The following table sets forth the reconciliation of basic and diluted loss per share for the three and six months ended June 30, 2024 and 2023 (in thousands except per share data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Net loss for basic and diluted loss per share available to common stockholders	$	(37,582	)	$	(26,649	)	$	(61,959	)	$	(57,402	)
Weighted average number of shares outstanding		113,236			142,626			105,571			142,146
Weighted average common stock warrants exercisable for nominal consideration		6,952			—			5,878			—
Weighted average number of shares, basic and diluted		120,188			142,626			111,449			142,146
Loss per share
Basic and Diluted	$	(0.31	)	$	(0.19	)	$	(0.56	)	$	(0.40	)

Stock Incentive and Employee Benefit Plans - Schedule of Stock Options Valuation Assumption Used (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility	99.00%	90.00%
Risk-free interest rate	4.44%	4.30%
Term of options (in years)	3 years 4 months 9 days	3 years 7 months 9 days
Black-Scholes Option Pricing Method [Member] \| Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected dividend yield	0.00%
Expected volatility	129.30%
Risk-free interest rate	5.39%
Term of options (in years)	6 months
Black-Scholes Option Pricing Method [Member] \| Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected dividend yield	0.00%
Black-Scholes Option Pricing Method [Member] \| Stock Options [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	72.00%
Risk-free interest rate	4.33%
Term of options (in years)	5 years 6 months
Black-Scholes Option Pricing Method [Member] \| Stock Options [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	97.00%
Risk-free interest rate	4.44%
Term of options (in years)	6 years 3 months 18 days

Fair Value Measurements (Details) - Schedule of fair value assets measured on a recurring basis - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets:
Cash and cash equivalents	$ 6,888	$ 3,921
Liabilities:
Oramed Note	75,370	104,089
FSF Deposit	$ 11,727
Convertible debenture		$ 4,340
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Derivative Liability, Noncurrent	Derivative Liability, Noncurrent
Derivative liabilities	$ 30,005	$ 1,518
Other long-term liabilities	187	179
Total liabilities measured at fair value	117,289	110,126
Level 1 [Member]
Liabilities:
Oramed Note	0
FSF Deposit	0
Convertible debenture		0
Derivative liabilities	0	0
Other long-term liabilities	0	0
Total liabilities measured at fair value	0	0
Level 2 [Member]
Liabilities:
Oramed Note	0
FSF Deposit	0
Convertible debenture		0
Derivative liabilities	0	0
Other long-term liabilities	0	0
Total liabilities measured at fair value	0	0
Level 3 [Member]
Liabilities:
Oramed Note	75,370	104,089
FSF Deposit	11,727
Convertible debenture		4,340
Derivative liabilities	30,005	1,518
Other long-term liabilities	187	179
Total liabilities measured at fair value	$ 117,289	$ 110,126

Balance Sheet Components

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Balance Sheet Components

5. Balance Sheet Components

Property and equipment, net

Property and equipment, net consists of the following (in thousands):


	June 30,			December 31,
	2024			2023
Construction in progress	$	689		$	689
Furniture		5			5
Computers and equipment		9			36
Leasehold improvements		50			50
Property and equipment, gross		753			780
Less: Accumulated depreciation		(39	)		(58	)
Property and equipment, net	$	714		$	722

The Company recognized depreciation expense of $4.0 thousand and $10.0 thousand for the three months ended June 30, 2024 and 2023, respectively, and $8.0 thousand and $20.0 thousand for the six months ended June 30, 2024 and 2023, respectively.

Accrued Expenses

Accrued expenses consists of the following (in thousands):


	June 30,		December 31,
	2024		2023
Accrued professional service fees	$	4,379	$	2,029
Accrued sales and marketing costs		1,473		1,601
Accrued tax payable		1,471		1,452
Accrued research and development costs		362		1,546
Accrued litigation expenses		-		500
Accrued others		303		280
Accrued expenses	$	7,988	$	7,408

Acquisitions (Additional Information) (Details) - USD ($)			6 Months Ended	12 Months Ended
	Jun. 14, 2022	May 31, 2022	Jun. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Payment to acquire license			$ 0
Accrued Royalty Payables			100,000	$ 5,000
Patents [Member] \| Sorrento [Member]
Business Acquisition [Line Items]
Payment upon the achievement of net sales		$ 20,000,000
Amount due for New Drug Application		$ 3,000,000
License Agreement
Business Acquisition [Line Items]
Development milestones payment was recognized under other long-term liabilities			200,000	200,000
License Agreement \| Romeg License Agreement [Member]
Business Acquisition [Line Items]
Up-front license fee	$ 2,000,000
Payment upon the achievement of net sales	13,000,000
Payments for royalties	7,100,000
Intangible asset	5,700,000
Deferred consideration	$ 3,700,000
Contingent consideration, liability			$ 0	$ 0

Summary of Significant Accounting Policies (Details) - Schedule of the calculation of basic and diluted net income per ordinary share - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Weighted average number of shares, diluted	120,188	142,626	111,449	142,146
Net loss per share attributable to common stockholders - diluted	$ (0.31)	$ (0.19)	$ (0.56)	$ (0.4)

- Definition

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482635/260-10-55-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-7

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482662/260-10-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 15: http://www.xbrl.org/2003/role/exampleRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 52
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482635/260-10-55-52

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-7

+ Details

Debt (Additional Information) (Details) - USD ($)								1 Months Ended	3 Months Ended		6 Months Ended
Debt (Additional Information) (Details) - USD ($)	Jun. 30, 2024	Jun. 11, 2024	Sep. 21, 2023	Jul. 01, 2023	Jun. 27, 2023	Apr. 30, 2023	Mar. 21, 2023	Sep. 30, 2023	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 18, 2024	Dec. 31, 2023	Oct. 11, 2023
Debt Instrument [Line Items]
Principle amount of issued debt						$ 25,000,000
Net cash proceeds for direct offering											$ 7,000,000
Repayment of debt prinnciple installment											$ 35,000,000	$ 0
Loan		$ 100,000,000
Company Receives The FSF Deposit Period		70 days
Non-Refundable Deposit Amount		$ 10,000,000
Ordinary shares issued	181,473,622	3,250,000							181,473,622		181,473,622		3,250,000	160,084,250
Deposit Warrant		$ 1.2
Warrant Exercise Price		$ 1.2
Commitment Amount		$ 85,000,000
Debt Instrument Redemption											The Company had the right, but not the obligation, in its sole discretion, to redeem, upon five business days’ prior written notice to Yorkville (the “Redemption Notice”), all or any portion of the amounts outstanding under the Convertible Debentures; provided that the trading price of the Common Stock is less than the Conversion Price at the time of the Redemption Notice. The redemption amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the redemption premium of 10% of the principal amount being redeemed, plus all accrued and unpaid interest in respect of such redeemed principal amount.
Common stock, shares issued	181,473,622	3,250,000							181,473,622		181,473,622		3,250,000	160,084,250
FSB Deposit	$ 11,700,000								$ 11,700,000		$ 11,700,000
Interest expense									100,000		100,000
Maximum [Member]
Debt Instrument [Line Items]
Debt conversion price															$ 2
Minimum [Member]
Debt Instrument [Line Items]
Debt conversion price															$ 0.5
Oramed Note
Debt Instrument [Line Items]
Principle amount of issued debt	10,000,000							$ 101,900,000
Net cash proceeds for direct offering											9,578,835
Estimated fair value	75,400,000								75,400,000		$ 75,400,000
Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Principle amount of issued debt							$ 25,000,000
Debt instrument, description											The Yorkville SPA provided that the Convertible Debentures would be issued and sold at a purchase price equal to 96% of the applicable principal amount in three tranches as follows: (i) $10.0 million upon the signing of the Yorkville SPA, which was funded on March 21, 2023, (ii) $7.5 million upon the filing of a registration statement on Form S-1 with the SEC to register the resale by Yorkville of any shares of Common Stock issuable upon conversion of the Convertible Debentures under the Securities Act of 1933, as amended (the “Securities Act”), which was funded on April 11, 2023 and (iii) $7.5 million at the time such registration statement is declared effective by the SEC, which was funded on April 20, 2023.
Debt instrument, interest rate							7.00%
Debt maturity date							Dec. 21, 2023				Mar. 15, 2024
Debt conversion price							$ 8
Debt Instrument Principal Amount, Percentage							5.00%
Debt payment terms											The Company had the option to repay either (i) in cash, with premium equal to 5% in respect of the principal amount of such payment, or (ii) by submitting a notice for an advance under the A&R Yorkville Purchase Agreement, or a series of advances thereunder, or any combination of (i) or (ii) as determined by the Company. In the case of (ii), the proceeds from the shares sold to Yorkville are applied against the outstanding amounts.
Convertible Debentures Issued Percent							96.00%
Redemption Premium											10.00%
Securities Purchase Agreement [Member] \| First installment [Member]
Debt Instrument [Line Items]
Repayment of debt prinnciple installment			$ 5,000,000
Securities Purchase Agreement [Member] \| Second Installment [Member]
Debt Instrument [Line Items]
Repayment of debt prinnciple installment			15,000,000
Securities Purchase Agreement [Member] \| Third Installment [Member]
Debt Instrument [Line Items]
Repayment of debt prinnciple installment			20,000,000
Securities Purchase Agreement [Member] \| Oramed Note
Debt Instrument [Line Items]
Principle amount of issued debt			101,900,000
Debt instrument, description										Interest under the Oramed Note accrues at a fluctuating per annum interest rate equal to the sum of (1) the greater of (x) 4% and (y) Term SOFR (as defined in the Oramed Note) and (2) 8.5%, payable in-kind on a monthly basis. Pursuant to the Oramed Note, since the outstanding principal of the Oramed Note was not repaid in full on or prior to March 21, 2024, an exit fee of approximately $3.1 million has been earned with respect to the Oramed Note, which shall be due and payable on the date on which the outstanding principal amount of the Oramed Note is paid in full. Upon the occurrence and during the continuance of an event of default under the Oramed Note, holders of more than 50% of the aggregate unpaid principal amount of the Oramed Notes may elect to accrue interest at a default rate equal to the lesser of (i) Term SOFR plus 15% or (ii) the maximum rate permitted under applicable law. Voluntary prepayments made before the one-year anniversary of the closing date of the Scilex-Oramed SPA must include a make-whole amount equal to 50% of the additional interest that would accrue on the principal amount so prepaid from the date of such prepayment through and including the maturity date. If the Oramed Note is accelerated upon an event of default, repayment is required at a mandatory default rate of 125% of the principal amount (together with 100% of accrued and unpaid interest thereon and all other amounts due in respect of the Oramed Note). The Oramed Note contains mandatory prepayment provisions requiring use of 70% of net cash proceeds from any Cash Sweep Financing (as defined in the Oramed Note) or advances under the ELOCs (as defined in the Oramed Note) to prepay the outstanding principal after the earlier of April 1, 2024 or full repayment of Acceptable Indebtedness (as defined in the Oramed Note).
Estimated fair value	$ 75,400,000								$ 75,400,000		$ 75,400,000
Debt Repayment Exit Fee			$ 3,100,000
Debt instrument, interest rate			4.00%
Debt maturity date			Mar. 21, 2025
Debt instrument, owned, percentage			50.00%
Debt instrument, default interest rate			15.00%
Debt instrument, percentage of interest accrued on principal amount			50.00%
Debt repayment, percentage of mandatory default rate of principal amount			125.00%
Debt repayment, percentage of mandatory default rate of accrued and unpaid interest			100.00%
Percentage of usage of cash proceeds from cash sweep financing			70.00%
Securities Purchase Agreement [Member] \| Oramed Note \| Monthly Basis [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate			8.50%
Securities Purchase Agreement [Member] \| Oramed Note \| First installment [Member]
Debt Instrument [Line Items]
Debt maturity date			Mar. 21, 2025
Securities Purchase Agreement [Member] \| Oramed Note \| Second Installment [Member]
Debt Instrument [Line Items]
Debt maturity date			Dec. 21, 2023
Securities Purchase Agreement [Member] \| Oramed Note \| Third Installment [Member]
Debt Instrument [Line Items]
Debt maturity date			Mar. 21, 2024
Securities Purchase Agreement [Member] \| Oramed Note \| Fourth Installment [Member]
Debt Instrument [Line Items]
Debt maturity date			Jun. 21, 2024
Securities Purchase Agreement [Member] \| Oramed Note \| Five Installment [Member]
Debt Instrument [Line Items]
Debt maturity date			Sep. 21, 2024
Securities Purchase Agreement [Member] \| Oramed Note \| Six Installment [Member]
Debt Instrument [Line Items]
Debt maturity date			Dec. 21, 2024
Tranche One \| Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Principle amount of issued debt							$ 10,000,000
Tranche Two \| Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Principle amount of issued debt							7,500,000
Tranche Three \| Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Principle amount of issued debt							$ 7,500,000
A&R Yorkville Purchase Agreement
Debt Instrument [Line Items]
Principle amount of issued debt						15,000,000
Net cash proceeds						$ 14,400,000
Ordinary shares issued	632,431								632,431		632,431
Convertible Debentures Repaid											$ 4,400,000
Common Stock at a conversion price											$ 8
Outstanding debt instrument											$ 7,700,000
Change in fair value									$ 35,000		35,000
Outstanding principal amount	$ 5,000,000								$ 5,000,000		$ 5,000,000
Common stock, shares issued	632,431								632,431		632,431
Initial Closing [Member]
Debt Instrument [Line Items]
Company Receives The FSF Deposit Period		60 days
Non-Refundable Deposit Amount		$ 85,000,000
Warrant Purchase		24,375,000
Company receives the FSF Deposit		$ 15,000,000
Second Closing [Member]
Debt Instrument [Line Items]
Warrant Purchase		4,875,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Principle amount of issued debt											$ 75,000,000
Termination fees	0.50%								0.50%		0.50%
Facility cap maximum					95.00%
Facility cap minimum					85.00%
Outstanding debt instrument					$ 250,000
Cash on hand	$ 1,000,000								$ 1,000,000		$ 1,000,000
Outstanding principal amount	$ 17,300,000								$ 17,300,000		$ 17,300,000
Accounts receivable revolving loan facility in an aggregate amount			$ 30,000,000		$ 30,000,000
Line Of Credit Facility Interest Rate				1.50%

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	45,000,000	45,000,000
Preferred stock, shares issued	29,057,097	29,057,097
Preferred stock, shares outstanding	29,057,097	29,057,097
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	740,000,000	740,000,000
Common stock, shares issued	181,473,622	160,084,250
Common stock, shares outstanding	121,405,037	100,015,665
Treasury stock share	60,068,585	60,068,585

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net loss for basic and diluted loss per share available to common stockholders	$ (61,959)	$ (57,402)
Adjustments to reconcile net loss to net cash proceeds from (used for) operating activities:
Depreciation and amortization	2,037	2,073
Amortization of debt issuance costs and debt discount	63	1
Non-cash operating lease cost	365	156
Stock-based compensation	7,171	7,307
Loss on derivative liability	15,741	5,335
Allocated expenses for warrant issuance cost	2,526	0
Change in fair value of debt and liability instruments	10,004	3,748
Other	53	(20)
Changes in operating assets and liabilities:
Accounts receivables, net	(3,407)	(6,332)
Inventory	1,138	(1,732)
Prepaid expenses and other	474	(9)
Other long-term assets	(30)	804
Accounts payable	653	4,334
Accrued Payroll	1,392	1,398
Accrued expenses	470	1,525
Accrued rebates and fees	35,405	16,886
Other liabilities	(402)	705
Other long-term liabilities	8	6
Net cash proceeds from (used for) operating activities	11,702	(21,217)
Investing activities
Acquisition consideration paid in cash for Romeg intangible asset acquisition	(300)	0
Purchase of property, plant, and equipment	0	(8)
Net cash used for investing activities	(300)	(8)
Financing activities
Proceeds from issuance of shares under Standby Equity Purchase Agreements and ATM Sales Agreement	156	16,166
Proceeds from issuance of Convertible Debentures	0	24,000
Proceeds from issuance of Revolving Facility	65,470	17,538
Proceeds from issuance of FSF Deposit	10,000	0
Repayment of Revolving Facility	(65,265)	(1,243)
Repayment of Oramed Note	(35,000)	0
Transaction costs paid related to the Business Combination	0	(1,372)
Repayment of Convertible Debentures	(4,375)	(1,285)
Payments of debt issuance costs	0	(380)
Proceeds from issuance of shares under Bought Deal Offering and Registered Direct Offering	25,000	0
Payments of Bought Deal Offering and Registered Direct Offering issuance costs	(2,834)	0
Proceeds from stock options and warrants exercised	383	743
Net cash (used for) proceeds from financing activities	(6,465)	54,167
Net change in cash, cash equivalents and restricted cash	4,937	32,942
Cash and cash equivalents at beginning of period	4,729	2,184
Cash and cash equivalents at end of period	9,666	35,126
Supplemental disclosure of non-cash financing activity
Issuance of shares to B.Riley pursuant to B. Riley Purchase Agreement	0	1,869
Issuance costs related to Bought Deal Offering and Registered Direct included in accrued expenses and account payables	1,440	0
Conversion of Convertible Debentures into common stock	0	7,735
Right-of-use assets obtained in exchange for operating lease liabilities with lease modification	$ 0	$ 2,523

Acquisitions

6 Months Ended

Jun. 30, 2024

Disclosure Text Block [Abstract]

Acquisitions

3. Acquisitions

SP-104 Acquisition

In May 2022, the Company acquired the Delayed Burst Release Low Dose Naltrexone asset and intellectual property rights for the treatment of chronic pain, fibromyalgia and chronic post-COVID syndrome (collectively, the “SP-104 Assets”). Pursuant to the acquisition provisions, the Company is obligated to pay Aardvark Therapeutics, Inc. (“Aardvark”) (i) $3.0 million upon initial approval by the FDA of a new drug application for the SP-104 Assets (which amount may be paid in shares of Common Stock or cash, in the Company’s sole discretion) (the “Development Milestone Payment”) and (ii) $20.0 million in cash, upon achievement of certain net sales by the Company of a commercial product that uses the SP-104 Assets (the “Sales Milestone Payment”). The Company will also pay Aardvark certain royalties in the single digits based on percentages of annual net sales by the Company of a commercial product that uses the SP-104 Assets.

The Sales Milestone Payment and sale volume-based future royalties were determined to meet a scope exception for derivative accounting and will not be recognized until the contingencies are realized. The Development Milestone Payment represents a liability, which will be measured at fair value for each reporting period. As of June 30, 2024 and December 31, 2023, the contingent consideration associated with Development Milestone Payment was $0.2 million, recorded in the other long-term liabilities.

GLOPERBA License Agreement

In June 2022, the Company entered into a license agreement (the “Romeg License Agreement”) with RxOmeg Therapeutics, LLC (a/k/a Romeg Therapeutics, Inc.) (“Romeg”). Pursuant to the Romeg License Agreement, among other things, Romeg granted the Company (a) a transferable license, with the right to sublicense, to (i) commercialize the pharmaceutical product comprising liquid formulations of colchicine for the prophylactic treatment of gout in adult humans (the “Initial Licensed Product” or “GLOPERBA”) in the United States (including its territories) (the “GLOPERBA Territory”), (ii) develop other products comprising the Initial Licensed Product as an active pharmaceutical ingredient (the “Licensed Products”) and commercialize any such products and (iii) manufacture Licensed Products anywhere in the world, solely for commercialization in the GLOPERBA Territory; and (b) an exclusive, transferable license, with a right to sublicense, to use the trademark GLOPERBA and logos, designs,

translations, and modifications thereof in connection with the commercialization of the Initial Licensed Product solely in the GLOPERBA Territory. The Initial Licensed Product, GLOPERBA, was approved and made available in the United States in 2020.

As consideration for the license under the Romeg License Agreement, the Company paid Romeg an up-front license fee of $2.0 million, and has agreed to pay Romeg (a) upon the Company’s achievement of certain net sales milestones, certain milestone payments in the aggregate amount of up to $13.0 million, (b) certain royalties in the mid-single digit to low-double digit percentages based on annual net sales of the Licensed Products by the Company during the applicable royalty term under the Romeg License Agreement, and (c) minimum quarterly royalty payments totaling $7.1 million commencing on the first year anniversary of the effective date of the Romeg License Agreement and ending on the later of (i) the expiration of the last-to-expire of the licensed patents covering the Licensed Products in the GLOPERBA Territory or (ii) the tenth anniversary of the effective date of the Romeg License Agreement.

In connection with the Romeg License Agreement, the Company recorded an intangible asset for acquired licenses of $5.7 million, which is comprised of the upfront license fee of $2.0 million and deferred consideration of $3.7 million that is the present value of the future minimum royalty payments and immaterial transaction costs. No contingent consideration was recognized as a liability or included in the fair value of the assets as of June 30, 2024 or December 31, 2023.

ELYXYB Acquisition

On February 12, 2023, the Company entered into an asset purchase agreement (the “ELYXYB APA”) with BioDelivery Sciences International, Inc. (“BDSI”) and Collegium Pharmaceutical, Inc. (“Collegium”, and together with BDSI, the “Sellers”) to acquire the rights to certain patents, trademarks, regulatory approvals, data, contracts, and other rights related to ELYXYB and its commercialization in the United States and Canada (the “ELYXYB Territory”).

As consideration for the acquisition, the Company assumed various rights and obligations under the asset purchase agreement between BDSI and Dr. Reddy’s Laboratories Limited, a company incorporated under the laws of India (“DRL”), dated August 3, 2021 (the “DRL APA”), including an irrevocable, royalty-free, exclusive license to know-how and patents of DRL related to ELYXYB that is necessary or used to exploit ELYXYB in the ELYXYB Territory. No cash consideration was or will be payable to the Sellers for such acquisition; however, the obligations under the DRL APA that were assumed by the Company include contingent sales and regulatory milestone payments and sales royalties. The Company is also obligated to make quarterly royalty payments to DRL on net sales of ELYXYB in the ELYXYB Territory. In April 2023, the Company launched ELYXYB in the U.S. As of June 30, 2024 and December 31, 2023, the Company had ending balances of accrued royalty payables of $0.1 million and $5.0 thousand, respectively. As of June 30, 2024, no sales or regulatory milestone payments had been accrued as there were no potential milestones yet considered probable of achievement.

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of fair value assets measured on a recurring basis

The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the level of inputs used in such measurements (in thousands):


	June 30, 2024
	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities
Oramed Note	$	75,370	$	—	$	—	$	75,370
FSF Deposit		11,727		—		—		11,727
Derivative liabilities		30,005		—		—		30,005
Other long-term liabilities		187		—		—		187
Total liabilities measured at fair value	$	117,289	$	—	$	—	$	117,289


	December 31, 2023
	Balance		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities
Oramed Note	$	104,089	$	—	$	—	$	104,089
Convertible Debentures		4,340		—		—		4,340
Derivative liabilities		1,518		—		—		1,518
Other long-term liabilities		179		—		—		179
Total liabilities measured at fair value	$	110,126	$	—	$	—	$	110,126

Schedule of the derivative liabilities measured at fair value using significant unobservable inputs Level 3

The following table includes a summary of the derivative liabilities measured at fair value during the six months ended June 30, 2024 (in thousands):


	Fair Value
Ending Balance as of December 31, 2023	$	1,518
Change in fair value measurement		15,741
Issuance of Firm Warrants as part of the Bought Deal Offering and RDO Common Warrants as part of the Registered Direct Offering		12,746
Ending Balance as of June 30, 2024	$	30,005

Schedule of quantitative information regarding Level 3 fair value measurements


	Private Warrants			Firm Warrants			RDO Common Warrants
	June 30,			June 30,			June 30,
	2024			2024			2024
Equity value	$	1.93		$	1.93		$	1.93
Exercise price	$	11.50		$	1.70		$	1.10
Term, in years		3.36			4.68			4.82
Volatility		99.0	%		66.0	%		73.0	%
Risk-free rate		4.44	%		4.31	%		4.30	%
Dividend yield		0.0	%		0.0	%		0.0	%
Call option value	$	0.62		$	1.16		$	1.40


	Private Warrants
	December 31,
	2023
Equity value	$	1.59
Exercise price	$	11.50
Term, in years		3.61
Volatility		90.0	%
Risk-free rate		4.30	%
Dividend yield		0.0	%
Call option value	$	0.39

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

Organization and Principal Activities - reconciliation of cash, cash equivalents and restricted cash reported (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 6,888	$ 3,921
Restricted cash	2,778	808
Total cash, cash equivalents, and restricted cash	$ 9,666	$ 4,729	$ 35,126	$ 2,184

Balance Sheet Components - Schedule of Acrcued expenses - Details (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Accrued professional service fees	$ 4,379	$ 2,029
Accrued sales and marketing costs	1,473	1,601
Accrued tax payable	1,471	1,452
Accrued research and development costs	362	1,546
Accrued litigation expenses	0	500
Accrued others	303	280
Accrued expenses	$ 7,988	$ 7,408

Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt

7. Debt

Convertible Debentures

On March 21, 2023, the Company entered into the Yorkville SPA pursuant to which the Company would issue and sell to Yorkville Convertible Debentures in an aggregate principal amount of up to $25.0 million. The Yorkville SPA provided that the Convertible Debentures would be issued and sold at a purchase price equal to 96% of the applicable principal amount in three tranches as follows: (i) $10.0 million upon the signing of the Yorkville SPA, which was funded on March 21, 2023, (ii) $7.5 million upon the filing of a registration statement on Form S-1 with the SEC to register the resale by Yorkville of any shares of Common Stock issuable upon conversion of the Convertible Debentures under the Securities Act of 1933, as amended (the “Securities Act”), which was funded on April 11, 2023 and (iii) $7.5 million at the time such registration statement is declared effective by the SEC, which was funded on April 20, 2023.

The Convertible Debentures bore interest at an annual rate of 7.00% and was initially set to mature on December 21, 2023. On October 11, 2023, the Company and Yorkville amended the Convertible Debentures. The Default Conversion Price (as defined therein) was originally set not to fall below $2.00 per share and such floor price has been amended to mean a price per share of Common Stock equal to 95% of the lowest daily VWAP (as defined therein) during the five consecutive trading days immediately preceding the conversion date, but not lower than $0.50 per share. The maturity date of the Convertible Debentures was also extended from December 21, 2023 to March 15, 2024. The outstanding principal amount was to be repaid in equal installments that are due every 30 days beginning on May 20, 2023, which is 60 days after the date on which the first Convertible Debenture was issued to Yorkville. The Convertible Debentures provided a conversion right, in which any portion of the outstanding and unpaid principal

and any accrued but unpaid interest, may be converted into shares of Common Stock, at a conversion price of $8.00 per share at the option of the holder of the Convertible Debentures.

The Company had the option to repay either (i) in cash, with premium equal to 5% in respect of the principal amount of such payment, or (ii) by submitting a notice for an advance under the A&R Yorkville Purchase Agreement, or a series of advances thereunder, or any combination of (i) or (ii) as determined by the Company. In the case of (ii), the proceeds from the shares sold to Yorkville are applied against the outstanding amounts.

The Company had the right, but not the obligation, in its sole discretion, to redeem, upon five business days’ prior written notice to Yorkville (the “Redemption Notice”), all or any portion of the amounts outstanding under the Convertible Debentures; provided that the trading price of the Common Stock is less than the Conversion Price at the time of the Redemption Notice. The redemption amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the redemption premium of 10% of the principal amount being redeemed, plus all accrued and unpaid interest in respect of such redeemed principal amount.

The Company elected the fair value option for the Convertible Debentures and recorded the changes in fair value within the consolidated statements of operations at the end of each reporting period. Pursuant to the Yorkville SPA, the Company issued additional Convertible Debentures in an aggregate principal amount of $15.0 million in April 2023 for $14.4 million in net cash proceeds. In April 2023, Yorkville elected to convert $5.0 million of the outstanding principal and accrued interest of the first Convertible Debentures issued to Yorkville, resulting in the issuance of 632,431 shares of Common Stock at a conversion price of $8.00 per share and reducing the outstanding Convertible Debentures balance by $7.7 million. The Company repaid the remaining $4.4 million of Convertible Debentures during the first quarter of 2024. Interest expense related to the Convertible Debentures and included in the changes in fair value was nil and $35 thousand for the three and six months ended June 30, 2024, respectively. Interest expense related to the Convertible Debentures and included in the changes in fair value was $288 thousand for the three and six months ended June 30, 2023.

The following table provides a summary of the changes in the balance and the estimated fair value of the Convertible Debentures (in thousands):


	June 30,
	2024
Beginning Balance as of January 1, 2024	$	4,340
Repayment of Convertible Debentures		(4,375	)
Change in fair value of Convertible Debentures		35
Ending Balance as of June 30, 2024	$	—

Revolving Facility

On June 27, 2023, Scilex Pharma entered into the eCapital Credit Agreement pursuant to which the Lender shall make available loans (the “Revolving Facility”) in an aggregate principal amount of up to $30.0 million. The Facility Cap may, at the request of Scilex Pharma and with the consent of the Lender, be increased in increments of $250,000 at such time as the outstanding principal balance under the eCapital Credit Agreement equals or exceeds 95% of the then-existing Facility Cap. The amount available to Scilex Pharma under the Revolving Facility at any one time is the lesser of the Facility Cap and 85% of the “Net Collectible Value” of “Eligible Receivables” (each as defined therein) minus the amount of any reserves or adjustments against receivables required by the Lender, in its discretion.

Under the terms of the eCapital Credit Agreement, interest will accrue daily on the principal amount outstanding at a rate per annum equal to the Wall Street Journal Prime Rate plus 1.5%, based on a year consisting of 360 days, and which shall be payable by Scilex Pharma monthly in arrears, commencing July 1, 2023. The eCapital Credit Agreement provides for an early termination fee of 0.5% of the Facility Cap if Scilex Pharma voluntarily prepays and terminates in full the Revolving Facility prior to the first anniversary of the closing of the Revolving Facility.

In connection with the eCapital Credit Agreement, Scilex Pharma and the Lender entered into blocked account control agreements with respect to Scilex Pharma’s collections and eCapital Credit Agreement funding accounts, which permit the Lender to sweep all funds in the collections account to an account of the Lender for application to the outstanding amounts under the Revolving Facility, and to exercise customary secured party remedies with respect to

the eCapital Credit Agreement funding account. All indebtedness incurred and outstanding under the eCapital Credit Agreement will be due and payable in full on July 1, 2026, unless the eCapital Credit Agreement is earlier terminated.

The eCapital Credit Agreement contains a financial covenant requiring Scilex Pharma to maintain cash on hand of at least $1.0 million at all times. Scilex Pharma’s obligations under the eCapital Credit Agreement are secured by a continuing security interest in Scilex Pharma’s accounts receivable, arising from customers in the ordinary course of business. The eCapital Credit Agreement contains customary events of default and also provides that an event of default includes a change of control of Scilex Pharma and the failure by the Company to issue at least $75.0 million of debt or equity by September 30, 2023, which condition was satisfied by the issuance of the Oramed Note. As of June 30, 2024, Scilex Pharma has an outstanding balance of $17.3 million under the Revolving Facility, which is classified as a long-term liability in the unaudited condensed consolidated balance sheet.

On September 21, 2023, Scilex Pharma signed a subordination agreement (the “Subordination Agreement”) with the Lender and Acquiom Agency Services LLC (the “Agent”). Pursuant to the Subordination Agreement, the rights and interests of the Lender under the eCapital Credit Agreement would be secured by first priority liens on the ABL Priority Collateral (as defined therein). The ABL Priority Collateral consists of all of the Company’s properties identified in the description of collateral in the UCC-1 Financing Statement filed with the Delaware Secretary of State on June 27, 2023. The Agent’s rights and interests under the Subsidiary Guarantee, dated as of September 21, 2023, entered into by the Company and each of its subsidiaries with Oramed and the Agent (the “Subsidiary Guarantee”), would be secured by first priority liens on certain other collateral and second priority liens on the ABL Priority Collateral. The Subordination Agreement also includes other standard interlender terms and requires that the Facility Cap (as defined therein) shall not exceed $30.0 million.

The Oramed Note

On September 21, 2023, the Company entered into a securities purchase agreement with Oramed (the “Scilex-Oramed SPA”), pursuant to which the Company issued the Oramed Note. The Oramed Note, which has a principal amount of $101.9 million, matures on March 21, 2025. It is payable in six principal installments, with the first installment of $5.0 million payable on December 21, 2023, the second installment in the principal amount of $15.0 million payable on March 21, 2024, the next three installments each in the principal amount of $20.0 million payable on each of June 21, 2024, September 21, 2024 and December 21, 2024 and the last installment in the entire remaining principal balance of the Oramed Note payable on March 21, 2025. Interest under the Oramed Note accrues at a fluctuating per annum interest rate equal to the sum of (1) the greater of (x) 4% and (y) Term SOFR (as defined in the Oramed Note) and (2) 8.5%, payable in-kind on a monthly basis. Pursuant to the Oramed Note, since the outstanding principal of the Oramed Note was not repaid in full on or prior to March 21, 2024, an exit fee of approximately $3.1 million has been earned with respect to the Oramed Note, which shall be due and payable on the date on which the outstanding principal amount of the Oramed Note is paid in full. Upon the occurrence and during the continuance of an event of default under the Oramed Note, holders of more than 50% of the aggregate unpaid principal amount of the Oramed Notes may elect to accrue interest at a default rate equal to the lesser of (i) Term SOFR plus 15% or (ii) the maximum rate permitted under applicable law. Voluntary prepayments made before the one-year anniversary of the closing date of the Scilex-Oramed SPA must include a make-whole amount equal to 50% of the additional interest that would accrue on the principal amount so prepaid from the date of such prepayment through and including the maturity date. If the Oramed Note is accelerated upon an event of default, repayment is required at a mandatory default rate of 125% of the principal amount (together with 100% of accrued and unpaid interest thereon and all other amounts due in respect of the Oramed Note). The Oramed Note contains mandatory prepayment provisions requiring use of 70% of net cash proceeds from any Cash Sweep Financing (as defined in the Oramed Note) or advances under the ELOCs (as defined in the Oramed Note) to prepay the outstanding principal after the earlier of April 1, 2024 or full repayment of Acceptable Indebtedness (as defined in the Oramed Note). Following each of the Registered Direct Offering (as defined below and as described under Note 9) and the receipt of the FSF Deposit (as described below), the Company made a mandatory prepayment of $9,578,835 and $7,000,000, respectively, to Oramed, which equals 70% of the net cash proceeds the Company received from the Registered Direct Offering and the FSF Deposit. Given such payment was not a voluntary prepayment, such prepayment did not trigger the make-whole amount under the Oramed Note.

The Oramed Note contains affirmative and negative covenants binding on the Company and its subsidiaries, which restrict, among other things, the Company and its subsidiaries from incurring indebtedness or liens, amending charter and organizational documents, repaying or repurchasing stock, repaying, repurchasing, or acquiring indebtedness, paying or declaring cash dividends, assigning, selling, transferring or otherwise disposing of assets, making or holding

investments, entering into transactions with affiliates, and entering into settlement agreements, in each case as more fully set forth in, and subject to certain qualifications and exceptions set forth in the Oramed Note. The Company was in compliance with all of the covenants as of June 30, 2024.

In connection with the Oramed Note, the Company and each of its subsidiaries (collectively, the “Guarantors”) entered into a security agreement (the “Security Agreement”) with Oramed (together with its successors and permitted assigns, the “Holder”) and the Agent, which acts as the collateral agent for the holders of the Oramed Note. Under this agreement, the Company and the Guarantors granted to the Agent (on behalf of and for the benefit of the holders of the Oramed Note and any Additional Notes as defined thereunder) a security interest in all or substantially all of the properties of the Company and each of the Guarantors. This was done to ensure the timely payment, performance, and full discharge of all obligations under the Oramed Note. The Security Agreement contains certain customary representations, warranties and covenants regarding the collateral thereunder, all of which are detailed in the Security Agreement.

At issuance, the Company concluded that certain features of the Oramed Note would be considered derivatives that would require bifurcation. In lieu of bifurcating such features, the Company has elected the fair value option for this financial instrument and records the changes in the fair value within the consolidated statements of operations at the end of each reporting period. As of June 30, 2024, the fair value of the Oramed Note was $75.4 million, which is classified as a current liability in the unaudited condensed consolidated balance sheet.

The following table provides a summary of the changes in the balance and the estimated fair value of the Oramed Note (in thousands):


	June 30,
	2024
Beginning Balance as of January 1, 2024	$	104,089
Change in fair value of Oramed Note – recorded in the unaudited condensed consolidated statements of operations		8,132
Change in fair value of Oramed Note – due to instrument-specific credit risk recorded as a component of other comprehensive income		(1,851	)
Repayment of Oramed Note		(35,000	)
Ending Balance as of June 30, 2024	$	75,370

Commitment Letter

On June 11, 2024, the Company entered into the Commitment Letter with FSF Lender, pursuant to which FSF Lender committed to provide the Company the FSF Loan in the aggregate amount of $100.0 million. The Commitment Amount shall be payable as follows: (i) $85.0 million no later than the Outside Date, which is 70 days following the date on which the Company receives the FSF Deposit and (ii) the remaining $15.0 million within 60 days following the Initial Closing.

Pursuant to the Commitment Letter, FSF Lender provided the Company a non-refundable FSF Deposit in immediately available funds in the aggregate principal amount of $10.0 million on the Deposit Date, which amount will be creditable towards the $85.0 million required to be funded by Lender at the Initial Closing. The Company received the FSF Deposit on June 18, 2024 and issued to FSF Lender the Deposit Warrant to purchase up to an aggregate of 3,250,000 shares of Common Stock (subject to adjustment for any stock dividend, stock split, reverse stock split or similar transaction), with an exercise price of $1.20 per share. The Deposit Warrant is immediately exercisable and will expire five years from the date of issuance. If the Initial Closing does not occur on or prior to the Outside Date, the Deposit shall automatically convert into an unsecured loan on the first day after the Outside Date. Within five days after such automatic conversion occurs, the Company shall issue a promissory note (the “Unsecured Promissory Note”) to FSF Lender to evidence such unsecured loan, which note shall be unsecured, have a maturity date of five years after the date of the Unsecured Promissory Note and be prepayable without premium or penalty. The Unsecured Promissory Note shall bear interest, payable quarterly in arrears, in an amount equal to the Unsecured Applicable Interest Amount (as defined in the Commitment Letter) for such period based on the actual number of days elapsed while principal is outstanding.

It is contemplated by the Commitment Letter that the Company and FSF Lender will enter into definitive documents with respect to the FSF Loan on terms to be mutually agreed in good faith. If such definitive documents are entered

into on or before the Outside Date, the Company agreed to issue to FSF Lender (i) at the Initial Closing, a warrant to purchase up to an aggregate of 24,375,000 shares (subject to adjustment for any stock dividend, stock split, reverse stock split or similar transaction) of Common Stock (the “Initial Closing Warrant”), and (ii) at the Second Closing, a warrant to purchase up to an aggregate of 4,875,000 shares (subject to adjustment for any stock dividend, stock split, reverse stock split or similar transaction) of Common Stock (the “Second Closing Warrant”), each to have an exercise price of $1.20 per share. The Initial Closing Warrant and the Second Closing Warrant will expire five years from the date of issuance. To evidence the FSF Loan, the Company agreed to issue to FSF Lender a Senior Secured Promissory Note (the “Secured Promissory Note”), which shall have a maturity date of five years after the date of issuance. The Secured Promissory Note shall bear interest, payable quarterly in arrears, in an amount equal to the Secured Applicable Interest Amount (as defined in the Commitment Letter) for such period, based on the actual number of days elapsed, while principal is outstanding, subject to certain conditions.

At issuance, the Company concluded that certain features of the FSF Deposit would be considered derivatives that would require bifurcation. In lieu of bifurcating such features, the Company has elected the fair value option for this financial instrument and records the changes in the fair value within the consolidated statements of operations at the end of each reporting period. The Company also concluded that the Deposit Warrant is not a freestanding instrument under ASC 480 and is embedded in the FSF Deposit and as such is part of the fair value measurement of the FSF Deposit. As of June 30, 2024, the fair value of the FSF Deposit was $11.7 million, which is classified as a non-current liability in the unaudited condensed consolidated balance sheet. Interest expense related to the FSF Deposit and included in the changes in fair value was $0.1 million for the three and six months ended June 30, 2024.

The following table provides a summary of the changes in the balance and the estimated fair value of the FSF Deposit (in thousands):


	June 30,
	2024
Beginning Balance as of June 11, 2024	$	10,000
Change in fair value of FSF Deposit		1,727
Ending Balance as of June 30, 2024	$	11,727

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Commitments and Contingencies - Schedule of Leases Supplemental Quantitative Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ (278)	$ (474)
Weighted average remaining lease term in years - operating leases	3 years 2 months 12 days	4 years
Weighted average discount rate - operating leases	11.00%	11.10%

Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

On July 2, 2024, the Company signed a letter of intent for a potential business combination of Semnur with Denali Capital Acquisition Corp. ("Denali"), a Cayman Islands corporation (Nasdaq: DECA).

In connection with the transactions contemplated by the Commitment Letter, the Company also entered into a Letter Agreement (the “Letter Agreement”) with the FSF Lender and the FSF Lender’s strategic consultant, IVI 66766 LLC (“IVI”), dated July 16, 2024, pursuant to which the Company agreed to reimburse the actual, reasonable and documented consulting fees incurred by the FSF Lender in connection with the preparation, negotiation and execution of the Commitment Letter and the definitive documents with respect to the transactions contemplated thereby, which fees were satisfied in full by the Company issuing to IVI a warrant to purchase up to an aggregate of 250,000 shares of Common Stock (the “Fee Warrant”) on July 16, 2024, with an exercise price of $1.20 per share. Subject to certain ownership limitations, the Fee Warrant is immediately exercisable and will expire five years from the date of issuance.

On August 9, 2024, Denali issued a convertible promissory note (the “Convertible Promissory Note”) in the total principal amount of up to $180,000 to the Company. The Convertible Promissory Note was issued with an initial principal balance of $15,036.74, with the remaining $164,963.26 drawable at the Denali’s request and upon the consent of the Company prior to the maturity of the Convertible Promissory Note. The Convertible Promissory Note matures upon the earlier of (i) the effective date of the consummation of Denali’s initial business combination or (ii) the date of the liquidation of Denali. Any future drawdowns of the remaining $164,963.26 principal amount available under the convertible promissory note are expected to fund future one-month extensions as necessary to provide additional time for Denali to complete a business combination. At the option of the Company, upon consummation of an initial business combination, the Convertible Promissory Note may be converted in whole or in part into additional Class A ordinary shares of Denali, at a conversion price of $10.00 per ordinary share (the “Conversion Shares”). The terms of the Conversion Shares will be identical to those of the private placement shares that were issued to the Denali Capital Global Investments, LLC in connection with Denali’s initial public offering (the “IPO”). In the event that Denali does not consummate an initial business combination, the Convertible Promissory Note will be repaid only from funds held outside of the trust account established in connection with the IPO or will be forfeited, eliminated or otherwise forgiven. No interest shall accrue on the unpaid principal balance of the Convertible Promissory Note.

Junior DIP Facility and Sorrento Share Purchase Agreement (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions			6 Months Ended
	Sep. 21, 2023	Jul. 05, 2023	Jun. 30, 2024	Feb. 29, 2024
Penny Warrants [Member]
Price per share	$ 0.01
Fair Value Of Warrants	$ 10.4
Warrants exercisable date			Mar. 14, 2025
Subsequent Penny Warrants 1 [Member]
Warrant vesting date			Mar. 19, 2024
Subsequent Penny Warrants 1 [Member] \| Common Stock [Member]
Issue of warrants			2,125,000
Subsequent Penny Warrants 2 [Member]
Warrant vesting date			Jun. 17, 2024
Subsequent Penny Warrants 2 [Member] \| Common Stock [Member]
Issue of warrants			2,125,000
Subsequent Penny Warrants 3 [Member]
Warrant vesting date			Sep. 15, 2024
Subsequent Penny Warrants 3 [Member] \| Common Stock [Member]
Issue of warrants			2,125,000
Subsequent Penny Warrants 4 [Member]
Warrant vesting date			Dec. 14, 2024
Subsequent Penny Warrants 4 [Member] \| Common Stock [Member]
Issue of warrants			2,125,000
Sorrento Stock Purchase Agreement \| Common Stock [Member]
Shares Purchased Under Stock Purchase Agreement	60,068,585
Sorrento Stock Purchase Agreement \| Preferred Stock [Member]
Shares Purchased Under Stock Purchase Agreement	29,057,097
Shares Purchased At Par Value Under Stock Purchase Agreement	$ 0.0001
Fair Value of stock repurchased	$ 52.6
Sorrento Stock Purchase Agreement \| Private Warrants [Member]
Shares Purchased Under Stock Purchase Agreement	3,104,000
Sorrento Stock Purchase Agreement \| Public Warrants [Member]
Shares Purchased Under Stock Purchase Agreement	1,386,617
Oramed Note
Legal fees and expenses	$ 12.3
Cash payment	$ 10.0
Oramed Note \| Closing Penny Warrant [Member]
Issue of warrants				882,352
Oramed Note \| Closing Penny Warrant [Member] \| Common Stock [Member]
Issue of warrants	4,500,000
Price per share	$ 0.01
Oramed Note \| Subsequent Penny Warrants [Member]
Transfer of warrants	4,000,000
Oramed Note \| Subsequent Penny Warrants [Member] \| Common Stock [Member]
Issue of warrants	8,500,000
Price per share	$ 0.01
Oramed Note \| Penny Warrants [Member] \| Common Stock [Member]
Number Of Share Outstanding	9.90%
Maximum [Member] \| Subsequent Penny Warrants [Member]
Warrants exercisable date			Mar. 14, 2025
Minimum [Member] \| Subsequent Penny Warrants [Member]
Warrants exercisable date			Dec. 14, 2024
Sorrento
Excise tax liability			$ 1.3
Sorrento \| Junior DIP Facility
Initial principal amount		$ 20.0
Debt instrument, interest rate		12.00%
Exit fee		2.00%
Debt instrument, description		The Junior DIP Facility was to mature on the earliest of: (i) September 30, 2023; (ii) the effective date of any Chapter 11 plan of reorganization with respect to Sorrento; (iii) the consummation of any sale or other disposition of all or substantially all of the assets of Sorrento; (iv) the date of the acceleration of the DIP Loans and the termination of the DIP Commitments (as defined in the Junior DIP Loan Agreement) in accordance with the DIP Documents (as defined in the Junior DIP Loan Agreement); and (v) dismissal of the Chapter 11 Cases or conversion of the Chapter 11 Cases into cases under Chapter 7 of the Bankruptcy Code.

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of the reconciliation of basic and diluted loss per share

The following table sets forth the reconciliation of basic and diluted loss per share for the three and six months ended June 30, 2024 and 2023 (in thousands except per share data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Net loss for basic and diluted loss per share available to common stockholders	$	(37,582	)	$	(26,649	)	$	(61,959	)	$	(57,402	)
Weighted average number of shares outstanding		113,236			142,626			105,571			142,146
Weighted average common stock warrants exercisable for nominal consideration		6,952			—			5,878			—
Weighted average number of shares, basic and diluted		120,188			142,626			111,449			142,146
Loss per share
Basic and Diluted	$	(0.31	)	$	(0.19	)	$	(0.56	)	$	(0.40	)

Schedule of potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share


	June 30,		December 31,
	2024		2023
Stock options		34,373,767		33,123,798
Public Warrants		6,854,309		6,854,309
Firm Warrants		5,832,653		—
RDO Common Warrants		15,000,000		—
Placement Agent Warrants		1,200,000		—
Deposit Warrant		3,250,000		—
Retainer Shares		4,000,000		4,000,000
Private Warrants		3,613,383		3,613,383
Representative Warrants		470,588		—
Shares Issuable pursuant to ESPP		116,723		29,806
Convertible Debentures		—		546,921
Total		74,711,423		48,168,217

Balance Sheet Components (Additional Information) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 4,000	$ 10,000	$ 8,000	$ 20,000

Stock Incentive and Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Options Outstanding Activity

The following table summarizes stock option activity during the six months ended June 30, 2024 (shares in thousands):


	Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life, in years		Aggregate Intrinsic Value
Outstanding as of December 31, 2023		33,124		$	4.38		7.5	$	7,459
Granted		1,472		$	0.99
Exercised		(101	)	$	1.43
Forfeited/Cancelled		(121	)	$	4.97
Outstanding as of June 30, 2024		34,374		$	4.24		7.1	$	6,662
Exercisable as of June 30, 2024		21,380		$	3.17		6.1	$	4,102

Schedule of Stock Options Valuation Assumption Used

The following assumptions were used in the Black-Scholes option pricing model to estimate stock-based compensation on the date of grant for stock options:


		Six Months Ended June 30, 2024
Stock options:
Expected dividend yield		0.00%
Expected volatility		72% - 97%
Risk-free interest rate		4.33% - 4.44%
Term of options (in years)		5.5 - 6.3
Employee stock purchase plan:
Expected dividend yield		0.00%
Expected volatility		129.30%
Risk-free interest rate		5.39%
Expected life (in years)		0.50

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Liquidity and Going Concern (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands						3 Months Ended		6 Months Ended
	Jun. 11, 2024	Jun. 27, 2023	Apr. 30, 2023	Mar. 21, 2023	Nov. 17, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 18, 2024	Dec. 31, 2023	Dec. 22, 2023
Liquidity and Going Concern [Line Items]
Shares issued, shares								250,000
Negative working capital						$ 205,000		$ 205,000
Cash and cash equivalents						6,888		6,888			$ 3,921
Loss from operations						(15,623)	$ (22,814)	(35,101)	$ (48,287)
Net cash used in operating activities								11,700
Long Term Commitment Amount	$ 100,000
Commitment Amount Payable	$ 85,000
Long term Purchase Period	70 days
Company receives the Deposit	$ 85,000
Non-Refundable Deposit Amount	$ 10,000
Company Receives The Deposit Period	60 days
Accumulated deficit						$ (552,204)		$ (552,204)			$ (490,245)
Offer and sell shares of Common Stock	3,250,000					181,473,622		181,473,622		3,250,000	160,084,250
Principal laon amount		$ 30,000
Principle amount of issued debt			$ 25,000
Outstanding balance of revolving facility								$ 17,300
Common stock, shares issued	3,250,000					181,473,622		181,473,622		3,250,000	160,084,250
Deposit Warrant Exercise Price										$ 1.2
Common stock, par value						$ 0.0001		$ 0.0001		$ 0.0001	$ 0.0001
Equity Purchase Agreement with Yorkville and B. Riley [Member]
Liquidity and Going Concern [Line Items]
Convertible Debenture principal Amount				$ 25,000
Convertible Debenture						$ 24,000		$ 24,000
Principle amount of issued debt								25,000
A&R Yorkville Purchase Agreement
Liquidity and Going Concern [Line Items]
Proceeds from sale of common stock								$ 200
Offer and sell shares of Common Stock						632,431		632,431
Principle amount of issued debt			$ 15,000
Right to sell maximum number of common stock shares					$ 500,000			$ 500,000
Common stock, shares issued						632,431		632,431
Common stock, par value					$ 0.0001
A&R Yorkville Purchase Agreement \| Common Stock [Member]
Liquidity and Going Concern [Line Items]
Shares issued, shares								250,000
ATM Sales Agreement [Member]
Liquidity and Going Concern [Line Items]
Proceeds from sale of common stock								$ 100
Offer and sell shares of Common Stock						92,295		92,295
Common stock, shares issued						92,295		92,295
Maximum [Member] \| ATM Sales Agreement [Member] \| Common Stock [Member]
Liquidity and Going Concern [Line Items]
Value Of Stock Sold For Termination												$ 170,000
Common Stock Issuable Value												$ 170,000
Initial Closing [Member]
Liquidity and Going Concern [Line Items]
Company receives the Deposit	$ 15,000
Non-Refundable Deposit Amount	85,000
Second Closing [Member]
Liquidity and Going Concern [Line Items]
Company receives the Deposit	$ 15,000

Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

STOCKHOLDERS EQUITY

9. Stockholders’ Equity

SPAC Warrants

Upon the completion of the Business Combination, the Company assumed the Private Warrants and the public warrants to purchase Common Stock, each with an exercise price of $11.50 per 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 Business Combination or earlier upon redemption or liquidation.

If the reported last sale price of the Common Stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders, the Company may redeem all the Public Warrants at a price of $0.01 per warrant upon not less than 30 days’ prior written notice.

If the Company calls the Public Warrants for redemption, the Company will have the option to require all holders that wish to exercise the Public Warrants to do so on a cashless basis. The Company will not be required to net cash settle the SPAC Warrants.

The Public Warrants are equity-classified warrants and recognized in additional paid-in capital in the accompanying consolidated balance sheets. The Private Warrants are liability-classified warrants and are recognized as liabilities (refer to Notes 1 and 4).

During the year ended December 31, 2023, the SPAC Warrants held by Sorrento were repurchased, and certain of such warrants transferred to Oramed, as a result of the Sorrento SPA (refer to Note 8).

As of June 30, 2024 and December 31, 2023, there were 6,854,309 Public Warrants outstanding.

As of June 30, 2024 and December 31, 2023, there were 3,613,383 Private Warrants outstanding.

Preferred Stock

As of June 30, 2024 and December 31, 2023, there were 29,057,097 shares of Preferred Stock outstanding. On September 21, 2023, the Preferred Stock was repurchased and derecognized for accounting purposes. The Preferred Stock is currently held as collateral for the Oramed Note.

Treasury Stock

As of June 30, 2024 and December 31, 2023, there were 60,068,585 shares of Treasury Stock.

A&R Yorkville Purchase Agreement

Pursuant to the A&R Yorkville Purchase Agreement, the Company had the right, but not the obligation, in its sole and absolute discretion, to sell to Yorkville up to $500.0 million of shares of Common Stock at its request and subject to certain conditions by delivering written notice to Yorkville at any time until the first day of the month following the 36-month anniversary of the date on which the Company’s registration statement on Form S-1 registering such shares was declared effective by the SEC. Pursuant to the A&R Yorkville Purchase Agreement, the shares of Common Stock, if any, that the Company elected to sell to Yorkville pursuant to a sale of Common Stock will be purchased at a price equal to 98% of the VWAP (as defined below) during the applicable pricing period for such advance, which shall be the period commencing upon receipt by Yorkville of an advance notice from the Company (or the open of regular trading hours, if later) and ending on 4:00 p.m. on the same day. For purposes of the A&R Yorkville Purchase Agreement, “VWAP” means, for a specified period, the volume weighted average price of the Common Stock on the Nasdaq Capital Market for such period as reported by Bloomberg L.P. through its “AQR” function. Pursuant to the terms of the Original Purchase Agreement, the Company filed a registration statement on Form S-1 (File No. 333-268607) (as it may be amended or supplemented from time to time, the “Yorkville Registration Statement”) related to the Original Purchase Agreement with the SEC on November 30, 2022 (following the execution of the Original Purchase Agreement). The Yorkville Registration Statement was initially declared effective by the SEC on December 9, 2022.

In connection with the execution of the Original Purchase Agreement, the Company issued to Yorkville 250,000 shares of Common Stock. During the six months ended June 30, 2024, the Company sold 96,982 shares of Common Stock pursuant to the A&R Yorkville Purchase Agreement for aggregate net proceeds of $0.2 million. On, and effective as of, March 25, 2024, the Company and Yorkville mutually agreed to terminate the A&R Yorkville Purchase Agreement.

B. Riley Purchase Agreement

Pursuant to the B. Riley Purchase Agreement, the Company had the right, but not the obligation, to sell to B. Riley up to $500.0 million of shares of Common Stock, subject to certain limitations and conditions set forth therein, from time to time at the Company’s sole and absolute discretion, during the term of the B. Riley Purchase Agreement.

The Company’s right to sell shares of Common Stock pursuant to the B. Riley Purchase Agreement shall end on the first day of the month following the 36-month anniversary of the date on which the B. Riley Registration Statement (as defined below) was initially declared effective by the SEC. Pursuant to the terms of the B. Riley Purchase Agreement, the Company filed a registration statement on Form S-1 (File No. 333-269205) (as it may be amended or supplemented from time to time, the “B. Riley Registration Statement”) related to the B. Riley Purchase Agreement with the SEC on January 12, 2023 (following the execution of the B. Riley Purchase Agreement). The B. Riley Registration Statement was initially declared effective by the SEC on January 20, 2023.

The shares of Common Stock, if any, that the Company elects to sell to B. Riley pursuant to an advance under the B. Riley Purchase Agreement will be purchased at a price equal to 98% of the VWAP (as defined in such agreement) during the pricing period prescribed therein.

In connection with the execution of the B. Riley Purchase Agreement, the Company issued to B. Riley 250,000 shares of Common Stock. During the six months ended June 30, 2024, the Company did not sell any shares of Common Stock pursuant to the B. Riley Purchase Agreement. On, and effective as of, February 16, 2024, the Company and B. Riley mutually agreed to terminate the B. Riley Purchase Agreement.

At-the-Market Sales Agreement

On December 22, 2023, the Company entered into a Sales Agreement (the “ATM Sales Agreement”) with B. Riley Securities, Inc., Cantor Fitzgerald & Co. and H.C. Wainwright & Co., LLC (the “Sales Agents”). Pursuant to the ATM Sales Agreement, the Company may offer and sell (the “Offering”) shares of Common Stock up to $170,000,000 (the “ATM Shares”), through or to the Sales Agents. The Company has no obligation to sell any shares of Common Stock under the ATM Sales Agreement and may suspend offers at any time. The Offering will terminate upon (i) the election of the Sales Agents upon the occurrence of certain adverse events, (ii) three business days’ advance notice from the Company to the Sales Agents or a Sales Agent to the Company, or (iii) the sale of all $170,000,000 of shares of Common Stock thereunder.

The ATM Shares offered and sold in the Offering will be issued pursuant to an effective shelf registration statement on Form S-3 (which was initially filed with the SEC on December 22, 2023, as amended, and declared effective on January 11, 2024 (File No. 333-276245)) (the “Shelf S-3 Registration Statement”). The ATM Shares may be offered only by means of a prospectus forming a part of the Shelf S-3 Registration Statement.

The Sales Agents are entitled to a commission equal to 3.0% of the gross proceeds from each sale of shares of Common Stock. The Company will also reimburse the Sales Agents for certain expenses and has agreed to provide indemnification and contribution to the Sales Agents against certain civil liabilities, including liabilities under the Securities Act.

As of June 30, 2024, the Company sold 92,295 shares of Common Stock pursuant to the ATM Sales Agreement for net proceeds of approximately $0.1 million.

Underwriting Agreement

On February 29, 2024, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Rodman & Renshaw LLC and StockBlock Securities LLC, acting as representatives of the underwriters, to sell, in an underwritten offering (the “Bought Deal Offering”), 5,882,353 shares of Common Stock (the “Firm Shares”) and accompanying common warrants to purchase up to an aggregate of 5,882,353 shares of Common Stock (the “Firm Warrants”). The securities in the Bought Deal Offering were offered and sold by us pursuant to the Shelf S-3 Registration Statement, a base prospectus dated January 11, 2024, and a final prospectus supplement dated February 29, 2024.

The Bought Deal Offering closed on March 5, 2024, and the combined price per Firm Share and accompanying Firm Warrant paid by the underwriters was $1.564, which amount reflects the combined public offering price of $1.70, less underwriting discounts and commissions. Pursuant to the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to 882,352 additional shares of Common Stock and/or common warrants to purchase up to 882,352 shares of Common Stock (the “Optional Warrants”, and together with the Firm Warrants, the “Common Warrants”). The underwriters did not exercise this option and it expired on March 30, 2024. Subject to certain ownership limitations, the Common Warrants are immediately exercisable, set to expire five years later, with an exercise price of $1.70 per share, subject to adjustments. Additionally, the Company issued the representative warrants (the “Representative Warrants”) to the underwriters, allowing them to purchase up to 470,588 shares of Common Stock, with these warrants being immediately exercisable at $2.125 per share, representing 125% of the combined public offering price per Firm Share and accompanying Firm Warrant.

The Company accounted for the Firm Warrants as a liability classified instrument (see Note 7) and the Representative Warrants as an equity classified instrument. The Representative Warrants are recognized in additional paid-in capital

in the Company’s consolidated balance sheets. The issuance costs allocated to the equity component are recorded as the reduction of the offering proceeds and the amounts allocated to the liability component are expensed as incurred within the selling, general and administrative expenses in the Company's consolidated statement of operations. The fair value of Representative Warrants as of the date of issuance was $0.3 million.

As of June 30, 2024, there were 5,832,653 Firm Warrants and 470,588 Representative Warrants outstanding.

Registered Direct Offering

On April 23, 2024, the Company entered into a securities purchase agreement (the “RDO Purchase Agreement”) with the investor named therein, pursuant to which the Company agreed to sell and issue, in a registered direct offering (the “Registered Direct Offering”): (i) an aggregate of 15,000,000 shares of Common Stock (the “RDO Shares”), and (ii) common warrants to purchase up to 15,000,000 shares of Common Stock (the “RDO Common Warrants”). The offering price per RDO Share and accompanying RDO Common Warrant to purchase one share of Common Stock was $1.00, for aggregate gross proceeds to the Company of $15,000,000, before deducting the placement agent fees and other offering expenses. Subject to certain ownership limitations, the RDO Common Warrants are exercisable on the six-month anniversary from the date of issuance, will expire on the five-year anniversary of the date of issuance and have an exercise price of $1.10 per share. The exercise price of the RDO Common Warrants is subject to certain adjustments, including stock dividends, stock splits, combinations and reclassifications of the Common Stock.

StockBlock Securities LLC and its affiliate, Rodman & Renshaw LLC, acted as exclusive placement agents (the “Placement Agents”) in connection with the Registered Direct Offering. As compensation for such placement agent services, the Company paid the Placement Agents an aggregate cash fee equal to 8.0% of the gross proceeds actually received by the Company from the Registered Direct Offering. The Company also reimbursed the Placement Agents $100,000 for actual, reasonable and documented fees and expenses, inclusive of fees and expenses of legal counsel and out-of-pocket expenses and $15,950 for clearing expenses. The Company has also agreed to issue to the Placement Agents or their respective designees common warrants, substantially in the form of the RDO Common Warrants, to purchase up to 1,200,000 shares of Common Stock (the “Placement Agent Warrants”), representing up to 8.0% of the total number of the RDO Shares issued in the Registered Direct Offering. The Placement Agent Warrants have an exercise price of $1.25 per share (which represents 125% of the combined offering price per share of Common Stock and the RDO Common Warrant sold in the Registered Direct Offering), will become exercisable on the six-month anniversary of the date of issuance and expire five years from the commencement of sales in the Registered Direct Offering.

The Company accounted for the RDO Common Warrants as a liability classified instrument (see Note 7) and the Placement Agent Warrants as an equity classified instrument. The Placement Agent Warrants are recognized in additional paid-in capital in the Company’s consolidated balance sheets. The issuance costs allocated to the equity component are recorded as the reduction of the offering proceeds and the amounts allocated to the liability component are expensed as incurred within the selling, general and administrative expenses in the Company's consolidated statement of operations. The fair value of Placement Agent Warrants as the date of issuance was $0.6 million.

As of June 30, 2024, there were 15,000,000 RDO Common Warrants and 1,200,000 Placement Agent Warrants outstanding.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
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-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Commitments and Contingencies (Additional Information) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jul. 08, 2024	Dec. 31, 2023	Apr. 30, 2023
Commitments and Contingencies [Line Items]
Finance lease liabilities		$ 0		$ 0
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]		Derivative Liability, Noncurrent		Derivative Liability, Noncurrent
Lease Expense		$ 300	$ 300	$ 500	$ 500
Additional ROU assets		2,578		2,578			$ 2,943	$ 2,500
Corresponding lease liabilities		1,893		1,893			2,237	$ 2,500
Former Employee [Member]
Commitments and Contingencies [Line Items]
Agreement settlement payment				3,500
Former Employee One[Member]
Commitments and Contingencies [Line Items]
Agreement settlement payment				2,500
GLOPERBA [Member]
Commitments and Contingencies [Line Items]
Due From Related Party		500		$ 500
Epoladerm [Member]
Commitments and Contingencies [Line Items]
Percentage on net sale				6.00%
Probudur [Member]
Commitments and Contingencies [Line Items]
Percentage on net sale				6.00%
Envelta [Member]
Commitments and Contingencies [Line Items]
Percentage on net sale				6.00%
Virpax Pharmaceuticals [Member]
Commitments and Contingencies [Line Items]
Reserved Receivable, Amount		2,500		$ 2,500
Payment Received						$ 2,500
Product Development Agreement [Member] \| Developers [Member]
Commitments and Contingencies [Line Items]
Royalty expenses		2,400	$ 2,300	4,700	4,300
Accrued royalty payables		$ 4,700		4,700			$ 2,400
Agreement maturity date	Oct. 02, 2028
Agreement maturity renewal description	The Product Development Agreement will renew automatically for subsequent successive one-year renewal periods unless Scilex Pharma or the Developers terminate it upon 6-month written notice.
Product Development Agreement [Member] \| Developers [Member] \| Minimum [Member]
Commitments and Contingencies [Line Items]
Royalty payment percentage related to future years	25.00%
Product Development Agreement [Member] \| Developers [Member] \| Maximum [Member]
Commitments and Contingencies [Line Items]
Royalty payment percentage related to future years	35.00%
Product Development Agreement [Member] \| Scilex Pharma [Member]
Commitments and Contingencies [Line Items]
Royalty expenses				$ 4,400	$ 4,300
Non-cancelable Lease Agreements [Member] \| Minimum [Member] \| Research and Development Facilities [Member]
Commitments and Contingencies [Line Items]
Operating lease, remaining lease term		2 months 12 days		2 months 12 days
Operating lease, lease term		3 years		3 years
Non-cancelable Lease Agreements [Member] \| Maximum [Member] \| Research and Development Facilities [Member]
Commitments and Contingencies [Line Items]
Operating lease, remaining lease term		3 years 3 months 18 days		3 years 3 months 18 days
Operating lease, lease term		5 years		5 years

Debt - Schedule of Convertible Debenture (Details) - Convertible Debentures [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Beginning Balance as of January 1, 2024	$ 4,340
Repayment of Convertible Debentures	(4,375)
Change in fair value of Convertible Debentures	35
Ending Balance as of June 30, 2024	$ 0

Fair Value Measurements (Details) - Schedule of The Inputs Used In Valuing The Derivative Warrant Liabilities - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity Value	$ 1.93	$ 1.59
Exercise price	$ 11.5	$ 11.5
Term (in years)	3 years 4 months 9 days	3 years 7 months 9 days
Volatility	99.00%	90.00%
Risk-free rate	4.44%	4.30%
Dividend yield	0.00%	0.00%
Call option value	$ 0.62	$ 0.39
Firm Warrants[Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity Value	1.93
Exercise price	$ 1.7
Term (in years)	4 years 8 months 4 days
Volatility	66.00%
Risk-free rate	4.31%
Dividend yield	0.00%
Call option value	$ 1.16
RDO Common Warrants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity Value	1.93
Exercise price	$ 1.1
Term (in years)	4 years 9 months 25 days
Volatility	73.00%
Risk-free rate	4.30%
Dividend yield	0.00%
Call option value	$ 1.4

Debt (Tables)

6 Months Ended

Jun. 30, 2024

Debt Instrument [Line Items]

Schdule of Convertible Debentures

The following table provides a summary of the changes in the balance and the estimated fair value of the Convertible Debentures (in thousands):


	June 30,
	2024
Beginning Balance as of January 1, 2024	$	4,340
Repayment of Convertible Debentures		(4,375	)
Change in fair value of Convertible Debentures		35
Ending Balance as of June 30, 2024	$	—

Schedule of FSF Deposit

The following table provides a summary of the changes in the balance and the estimated fair value of the FSF Deposit (in thousands):


	June 30,
	2024
Beginning Balance as of June 11, 2024	$	10,000
Change in fair value of FSF Deposit		1,727
Ending Balance as of June 30, 2024	$	11,727

Oramed Note

Debt Instrument [Line Items]

Schedule of the Oramed Note

The following table provides a summary of the changes in the balance and the estimated fair value of the Oramed Note (in thousands):


	June 30,
	2024
Beginning Balance as of January 1, 2024	$	104,089
Change in fair value of Oramed Note – recorded in the unaudited condensed consolidated statements of operations		8,132
Change in fair value of Oramed Note – due to instrument-specific credit risk recorded as a component of other comprehensive income		(1,851	)
Repayment of Oramed Note		(35,000	)
Ending Balance as of June 30, 2024	$	75,370

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net revenue	$ 16,370	$ 12,582	$ 27,254	$ 23,164
Operating costs and expenses:
Cost of revenue	4,390	4,177	8,230	7,768
Research and development	2,004	3,204	5,112	5,940
Selling, general and administrative	24,598	26,989	53,876	55,690
Intangible amortization	1,001	1,026	2,028	2,053
Legal settlements	0	0	(6,891)	0
Total operating costs and expenses	31,993	35,396	62,355	71,451
Loss from operations	(15,623)	(22,814)	(35,101)	(48,287)
Other expense:
Loss on derivative liability	15,284	82	15,741	5,335
Change in fair value of debt and liability instruments	6,099	3,748	10,004	3,748
Interest expense, net	571	5	1,102	4
Loss on foreign currency exchange	5	3	11	23
Total other expense	21,959	3,838	26,858	9,110
Loss before income taxes	(37,582)	(26,652)	(61,959)	(57,397)
Income tax expense (benefit)	0	(3)	0	5
Net loss	$ (37,582)	$ (26,649)	$ (61,959)	$ (57,402)
Earnings Per Share [Abstract]
Net loss per share attributable to common stockholders - basic	$ (0.31)	$ (0.19)	$ (0.56)	$ (0.4)
Net loss per share attributable to common stockholders - diluted	$ (0.31)	$ (0.19)	$ (0.56)	$ (0.4)
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average number of shares during the period-basic	120,188	142,626	111,449	142,146
Weighted average number of shares during the period -diluted	120,188	142,626	111,449	142,146
Comprehensive loss:
Net Income (Loss)	$ (37,582)	$ (26,649)	$ (61,959)	$ (57,402)
Other comprehensive income:
Changes in fair value attributable to instrument-specific credit risk	1,851	0	1,851	0
Total other comprehensive income	1,851	0	1,851	0
Comprehensive loss	$ (35,731)	$ (26,649)	$ (60,108)	$ (57,402)

Goodwill and Intangible Assets - Summary of identifiable intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 60,781	$ 60,781
Accumulated amortization	26,325	24,296
Intangibles, net	34,456	36,485
Patent rights
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	32,630	32,630
Accumulated amortization	16,681	15,591
Intangibles, net	15,949	17,039
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	21,940	21,940
Accumulated amortization	8,411	7,679
Intangibles, net	13,529	14,261
Acquired licenses
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,711	5,711
Accumulated amortization	733	551
Intangibles, net	4,978	5,160
Assembled workforce
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	500	500
Accumulated amortization	500	475
Intangibles, net	$ 0	$ 25

Subsequent Events (Additional Information (Details) - USD ($)	Aug. 09, 2024	Jul. 16, 2024	Oct. 11, 2023
Maximum [Member]
Subsequent Event [Line Items]
Debt conversion price			$ 2
Subsequent Event [Member] \| Convertible Promissory Note [Member]
Subsequent Event [Line Items]
Debt conversion price	$ 10
Debt accrued interest	$ 0
Subsequent Event [Member] \| Convertible Promissory Note [Member] \| Principal Balance [Member]
Subsequent Event [Line Items]
Debt principal amount	15,036.74
Subsequent Event [Member] \| Convertible Promissory Note [Member] \| Remaining Drawable Balance [Member]
Subsequent Event [Line Items]
Debt principal amount	164,963.26
Subsequent Event [Member] \| Convertible Promissory Note [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Debt principal amount	$ 180,000
Subsequent Event [Member] \| Letter Agreement [Member] \| Common Warrants [Member] \| Common Stock [Member]
Subsequent Event [Line Items]
Number of shares into which warrants converted		250,000
Offering price per share		$ 1.2

Restatement of Previously Issued Financial Statements (Details) - Schedule of impact of these adjustments to the financial statement, as previously reported - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Condensed Financial Statements, Captions [Line Items]
Warrant Liability	$ 30,005	$ 1,518
Total Liabilities	319,236	274,247
Common Stock Issued	18	16
Additional Paid-in Capital	426,165	407,813
Accumulated Deficit	(552,204)	(490,245)
Total Shareholders’ Equity (Deficit)	$ (214,692)	$ (172,938)

Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480418/310-10-S99-2

+ Details

Debt - Schedule of FSF Deposit (Details) - FSF Loan [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Beginning Balance as of January 1, 2024	$ 10,000
Change in fair value of FSF Deposit	1,727
Ending Balance as of June 30, 2024	$ 11,727