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Balance Sheet Components | 3 Months Ended
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Mar. 31, 2026
Property, Plant and Equipment [Abstract] |
Balance Sheet Components | 6. Balance Sheet Components Note Receivable QScan Convertible Note Receivable On January 29, 2026, the Company entered into a Convertible Promissory Note (the “QScan Note”) with QScan, a private medical technology company, pursuant to which the Company loaned QScan $20.0 million in exchange for the QScan Note. The QScan Note matures on October 29, 2026 and accrues interest at 3.66% per annum, commencing January 29, 2026. The QScan Note provides for (i) automatic conversion into 140,379,226 shares of QScan common stock (“QScan Common Stock”) upon QScan's assumption of the loan obligations of the borrowers, which triggering event occurred in February 2026, and (ii) optional conversion at the Company's election at any time prior to maturity. The QScan Note had not been converted into QScan Common Stock as of March 31, 2026. The QScan Note remains outstanding as a loan receivable on the Company's condensed consolidated balance sheet. The Company intends to convert the QScan Note within the next several months, subject to reaching agreement on equity ownership percentages. The Company accounts for the QScan Note as a loan receivable under ASC Topic 310 at amortized cost using the effective interest method. No embedded features in the QScan Note require bifurcation under ASC Topic 815. The QScan Note is subject to the current expected credit loss (“CECL”) model under ASC Topic 326. As of March 31, 2026, the Company recorded an allowance for credit losses of $0.8 million, representing an estimated 4% default rate applied to the $20.0 million outstanding principal, based on U.S. speculative-grade corporate default rate data. The Company recorded the credit loss by debiting other expense and crediting the allowance for credit losses. Expected credit losses will be reassessed each reporting period. Interest income on the QScan Note for the three months ended March 31, 2026 was $0.1 million. Property and Equipment, Net Property and equipment, net consists of the following (in thousands):
|  | March 31, |  |  | December 31, |
|  | 2026 |  |  | 2025 |
Construction in progress |  | $ | 905 |  |  | $ | 909 |
Furniture |  |  | 145 |  |  |  | 139 |
Computers and equipment |  |  | 78 |  |  |  | 75 |
Leasehold improvements |  |  | 3,909 |  |  |  | 3,746 |
Machinery and lab equipment |  |  | 8,562 |  |  |  | 8,192 |
Land and Buildings |  |  | 899 |  |  |  | 859 |
Property and equipment, gross |  |  | 14,498 |  |  |  | 13,920 |
Less: Accumulated depreciation |  |  | (1,119 | ) |  |  | (321 | )
Property and equipment, net |  | $ | 13,379 |  |  | $ | 13,599 |
The Company recognized depreciation expense of $0.8 million and $1.0 thousand for the three months ended March 31, 2026 and 2025, respectively. Other Long-Term Assets Datavault Meme Coin and Warrant Distributions As described in Note 5 above, Datavault declared and made three in-kind distributions of meme coins, one which included a concurrent warrant distribution to certain of its record equity holders. Upon receipt of the meme coins and warrants, the fair value of the meme coins and warrants was of approximately $0.2 million and $0.5 million was recorded in Other expense, net. The Company recorded the amounts in Other long-term assets in the accompanying unaudited condensed consolidated balance sheets. Investments PA OPS Investment Agreement with PA OPS Investor LLC On August 17, 2025, Scilex Bio entered into an Investment Commitment Agreement (the “Investment Agreement”) with PA OPS Investor LLC (“Investor LLC”). Pursuant to the terms of the Investment Agreement, the Company committed to providing $2.5 million (the “Committed Amount”) in future funding, contingent upon Investor LLC successfully identifying and acquiring an appropriate target company (“Target”) for investment using the Committed Amount by December 31, 2025. Although the arrangement was legally structured as if the Investor LLC had extended a $2,500,000 loan (the “Loan”) to the Company at an annual interest rate of 4.03%, no cash was exchanged between the Investor LLC and the Company on signing date of the Investment Agreement. Accordingly, the Company concluded that, in substance, the transaction does not represent a loan. In August 2025, Investor LLC acquired the Target which consists of certain assets of a nursing home. However, as the Company is yet to provide the full funding of the Committed Amount, the Company has no ownership interest in the Investor LLC or in the nursing home. As of March 31, 2026 the Company had made aggregate cash payments of $1.2 million (the “Funding”) to Investor LLC under the Committed Amount of $2.5 million, of which $0.2 million was paid during the three months ended March 31, 2026. The Funding was applied as a partial repayment of the Loan and, accordingly, did not result in the issuance of any equity interest to Scilex. As the Target has been acquired, the Funding is no longer subject to refund. The Company accounts for the Funding as an equity investment on its condensed consolidated balance sheet, recorded at cost less any impairment. As of March 31, 2026, the Company identified no indicators of impairment. iLeukon Intellectual Property License Agreement In December 2024, Vivasor entered into an Intellectual Property License Agreement with iLeukon Therapeutics, Inc. ("iLeukon"), pursuant to which Vivasor agreed to license certain patents to iLeukon in exchange for 400,000 shares of iLeukon common stock, representing approximately 2% of iLeukon's outstanding equity, for an aggregate value of approximately $1.1 million, and a $1.0 million payment contingent upon the closing of a future Series A financing. The licensed intellectual property was not transferred and the shares were not issued until the three months ended March 31, 2026. The Company recognized approximately $1.1 million of revenue during the three months ended March 31, 2026, when the applicable recognition criteria were met. The Company evaluated its investment in iLeukon and concluded that the iLeukon common stock is a freestanding equity security within the scope of ASC 321. The Company also determined that iLeukon is a VIE under ASC 810, however, the Company is not the primary beneficiary because it does not have the power to direct the activities that most significantly affect iLeukon's economic performance and, accordingly, the Company does not consolidate iLeukon. Although the combined ownership interest of the Company and its related parties exceeds 20% of iLeukon's outstanding equity, the Company determined that it does not have the ability to exercise significant influence over iLeukon's operating and financial policies, and accordingly, the investment is not accounted for under the equity method in accordance with ASC 323. The investment does not have a readily determinable fair value, and thus, the Company elected the measurement alternative under ASC 321 and accounted for the investment at cost, less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. As of March 31, 2026, the Company identified no indicators of impairment. The carrying value of the Company's investment in iLeukon as of March 31, 2026 was approximately $1.1 million. Equity Method Investments, at fair value Datavault Securities Purchase Agreement On September 25, 2025, the Company entered into a Securities Purchase Agreement (the “Datavault SPA”) with Datavault AI Inc., a Delaware corporation (“Datavault”), pursuant to which Datavault agreed to issue and sell, and the Company agreed to purchase, 15.0 million shares of common stock of Datavault (“Datavault Common Stock”) and a pre-funded warrant (the “Datavault Pre-Funded Warrant”) to purchase 263,914,094 shares of Datavault Common Stock for an aggregate purchase price of $150.0 million. On September 26, 2025 (the “Initial Datavault Closing Date”), the Company acquired 15,000,000 shares of Datavault Common Stock at a purchase price of $0.5378 per share, for an aggregate consideration of approximately $8.1 million, which was settled in Bitcoin. The investment in Datavault is accounted for as an equity security investment measured at fair value, with changes in the fair value recognized in unrealized gains and losses on equity investment in the period in which they occur. Fair value was determined based on quoted prices in active markets for identical securities, and the investment qualifies as an equity security with a readily determinable fair value, classified as a Level 1 financial instrument and accounted for as an equity investment in equity securities. On November 25, 2025, the Company exercised the Datavault Pre-Funded Warrant in full for an aggregate exercise price of approximately $26.4 thousand to purchase 263,914,094 shares of Datavault Common Stock (such shares, the “Datavault Pre-Funded Warrant Shares”) in exchange for an aggregate of approximately $141.9 million, to be settled in Bitcoin. The exercise price of the Datavault Pre-Funded Warrant will be $0.0001 per share. The Datavault Pre-Funded Warrant will be immediately exercisable upon issuance and will expire when exercised in full. The exercise of the Datavault Pre-Funded Warrant increased the Company’s percentage ownership in Datavault to approximately 48.0% and provided the Company with the right to nominate two of the nine members of the board of directors. Although no appointments have been made, the Company has determined that it has obtained the ability to exercise significant influence over its investment. Therefore, the Company began accounting for its investment under the equity method of accounting and elected to apply the fair value option, with changes in the fair value recognized in unrealized gains and losses on equity investment in the period in which they occur. The fair value option has been elected as the Company believes it best reflects the underlying economics of this investment. During the months of October 2025 and prior to the Company exercise of Datavault Pre-Funded Warrant in November 2025, the Company sold a total of 13,389,235 shares of Datavault Common Stock for gross proceeds of $26.4 million, which resulted in realized gains in the amount of $19.2 million accounted for using equity investment. After the Company exercised of Datavault Pre-Funded Warrant in November 2025, the Company sold a total of 21,079,599 shares of Datavault Common Stock for gross proceeds of $13.6 million, which resulted in realized gains in the amount of $4.7 million accounted for using equity method investment for the year ended December 31, 2025. There have been no transactions between the Company and Datavault other than those arising from the Datavault License Agreement and Vivasor-Datavault License Agreement (together "Datavault License Agreements") (see Note 4 for more details) and purchases of Bitcoin from Datavault during the year ended December 31, 2025 amounting to $25.2 million (See Digital Assets below for more details). The fair value measurement of the Company’s investment in Datavault is based on quoted prices in an active market and valued at the closing price reported at the end of each period, and thus, represents a Level 1 measurement on the fair value hierarchy. The Company recognized a $19.2 million loss accounted for using equity security investment measured at fair value prior to the exercise of the Datavault Pre-funded Warrants on November 25, 2025. The Company recognized $42.3 million and nil gain using equity method, for the three months ended March 31, 2026 and 2025. For the three months ended March 31, 2026 and 2025, the carrying value of the Company investment in Datavault's common stock is $79.1 million and nil, and is recorded in Equity method investment, at fair value in the condensed consolidated balance sheets. The Company's ownership of Datavault Common Stock was approximately 21% and 37% as of March 31, 2026 and December 31, 2025, respectively. Summarized Financial Information of Datavault The following is a summary of financial data for investments accounted for under the equity method of accounting (in thousands):
Balance Sheet |  |  |  |  |  |
Datavault AI Inc. |  |  |  |  |  |
|  | March 31, 2026 |  |  | December 31, 2025 |
ASSETS |  |  |  |  |  |
Current assets: |  | $ | 106,268 |  |  | $ | 142,873 |
Total assets |  | $ | 250,113 |  |  | $ | 274,704 |
LIABILITIES |  |  |  |  |  |
Current liabilities: |  | $ | 23,024 |  |  | $ | 26,881 |
Total liabilities |  | $ | 30,085 |  |  | $ | 36,730 |
Income Statement |  |  |  |  |  |
Datavault AI Inc. |  |  |  |  |  |
|  | Three months ended March 31, |
|  | 2026 |  |  | 2025 |
Loss from operations |  | $ | 30,950 |  |  | $ | 9,431 |
Net loss |  | $ | 53,131 |  |  | $ | 9,563 |
Digital Assets On September 23, 2025, the Company entered into a securities agreement with Biconomy PTE Ltd (“Biconomy”), pursuant to which the Company sold to Biconomy an aggregate of 12,500,000 shares of common stock of Semnur held by the Company for proceeds of $200.0 million in Bitcoin. As noted above, the Company used $150.0 million to purchase shares of Datavault Common Stock payable in Bitcoin. During the three months ended March 31, 2026, the Company purchased Bitcoin from Datavault amounting to $18.7 million. The table below summarizes the amounts shown on our unaudited condensed consolidated balance sheets as of March 31, 2026 (in thousands except units of digital assets):
|  | March 31, 2026 |
|  | Units |  |  | Cost Basis |  |  | Fair Value |
Bitcoin |  |  | 955 |  |  | $ | 95,591 |  |  | $ | 65,345 |
Total Digital assets |  |  | 955 |  |  | $ | 95,591 |  |  | $ | 65,345 |
The following table summarizes the activity in the Company’s digital assets (in thousands) for the period indicated:
|  | March 31, 2026 |
Beginning Bitcoin balance at fair value December 31, 2025 |  | $ | 64,709 |
Additions |  | $ | 18,700 |
Unrealized loss on digital assets |  |  | (18,064 | )
Ending balance at fair value March 31, 2026 |  | $ | 65,345 |
For the three months ended March 31, 2026 there are nil dispositions of Bitcoin. Accrued Expenses Accrued expenses consists of the following (in thousands):
|  | March 31, |  |  | December 31, |
|  | 2026 |  |  | 2025 |
Accrued professional service fees |  | $ | 732 |  |  | $ | 356 |
Accrued research and development costs |  |  | 10,934 |  |  |  | 13,058 |
Accrued tax payable |  |  | 144 |  |  |  | 50 |
Accrued advisor fees related to Semnur Business Combination |  |  | 14,000 |  |  |  | 14,000 |
Accrued Datavault licenses |  |  | 25,000 |  |  |  | 30,000 |
Accrued interest |  |  | 6,766 |  |  |  | 6,862 |
Accrued others |  |  | 2,461 |  |  |  | 2,088 |
Accrued expenses |  | $ | 60,037 |  |  | $ | 66,414 |
Accrued Rebates and Fees Our Gross-to-Net Revenue Adjustments Gross revenue is directly impacted by the Company’s gross-to-net revenue adjustments for sales rebates, discounts, coupons, fees, returns, and chargebacks. For the three months ended March 31, 2026 and 2025, gross revenue was $25.7 million and $17.7 million, respectively, while net revenue was $8.6 million and $5.0 million, respectively. The gross-to-net revenue adjustment of approximately $17.1 million and $12.7 million for the three months ended March 31, 2026 and 2025, respectively, was primarily attributable to the following:
|  | March 31, |  |  | March 31, |
|  | 2026 |  |  | 2025 |
Gross-to-Net Revenue Adjustments |  |  |  |  |  |
Sales rebates |  | $ | 11,917 |  |  | $ | 9,161 |
Service fees |  |  | 2,231 |  |  |  | 2,004 |
Estimated sales returns, discounts, co-payment assistance and coupon |  |  | 1,636 |  |  |  | 649 |
Chargebacks |  |  | 1,337 |  |  |  | 885 |
Total |  | $ | 17,121 |  |  | $ | 12,699 |
The accruals for Medicare, Medicaid and related state program and contractual rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows:
|  | March 31, |  |  | December 31, |
|  | 2026 |  |  | 2025 |
Other current liabilities: |  |  |  |  |  |
Accrued rebates |  | $ | 235,549 |  |  | $ | 220,693 |
Other accruals |  |  | 11,965 |  |  |  | 11,063 |
Total accrued rebates and other sales-related accruals |  | $ | 247,514 |  |  | $ | 231,756 |
As of March 31, 2026, the Company’s accrued rebates and fees liability was $247.5 million, compared to $231.8 million as of December 31, 2025. The increase of approximately $15.8 million was mainly due to the fact that the Company made only limited disbursements to counterparties during 2026 as its focus was to deploy its cash resources to repay Company debt. The rebates balance of $247.5 million primarily consists of government disbursements (Medicare and Medicaid) and commercial insurance disbursements.

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