Loss Per Share

12 Months Ended

Dec. 31, 2022

Loss Per Share

13. Loss Per Share

The Company complies with accounting and disclosure requirements of FASB ASC Topic 260,

Earnings Per Share

. The Company has two classes of shares, which are referred to as Common Stock and Preferred Stock.

Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the

two-class

method required for participating securities. Net loss per share has been retrospectively adjusted for all periods presented prior to the Business Combination. The retroactive adjustment is based on the same number of weighted average shares outstanding in each historical period.

For the years ended December 31, 2022, 2021, and 2020, basic loss per share is computed using the

two-class

method. The

two-class

method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. Preferred Stock is not contractually required to share in net losses of the Company.

The following table sets forth the reconciliation of basic and diluted loss per share for the years ended December 31, 2022, 2021, and 2020 (in thousands except per share data):


	Year Ended December 31,
	2022			2021			2020
Net loss attributable to Scilex	$	(23,364	)	$	(88,424	)	$	(47,519	)
Net loss attributable to participating securities	$	—		$	—		$	—
Net loss attributable to common stockholders	$	(23,364	)	$	(88,424	)	$	(47,519	)
Weighted average common shares outstanding		134,226			132,858			132,891
Effect of Dilutive Securities		—			—			—

Denominator for Diluted Loss per Share—Adjusted for Dilutive Securities		134,226			132,858			132,891
Basic and Diluted Loss Per Share	$	(0.17	)	$	(0.67	)	$	(0.36	)

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:


	Year Ended December 31,
	2022		2021		2020
Stock options		16,939,093		18,967,724		20,746,432
Public Warrants		6,899,988		—		—
Private Warrants		4,104,000		—		—