1. Business Overview

LB Pharmaceuticals Inc (the “Company” or “LB”) was incorporated under the laws of the State of Delaware in September 2015 and is headquartered in New York, New York.

The Company is a late-stage biopharmaceutical company developing novel therapies for the treatment of a wide range of neuropsychiatric disorders including schizophrenia, bipolar depression, adjunctive treatment of major depressive disorder and other diseases. The Company is building a pipeline that leverages the broad therapeutic potential of the Company’s lead product candidate, LB-102, which the Company believes has the potential to be the first benzamide antipsychotic drug approved for neuropsychiatric disorders in the United States. LB-102 is currently in late-stage clinical development for schizophrenia and bipolar depression. The Company is also planning to conduct a Phase 2 clinical trial evaluating LB-102 as an adjunctive treatment in major depressive disorder, or MDD.

Since the Company’s inception, it has focused substantially all of its efforts and financial resources on organizing and staffing the Company, raising capital, building its intellectual property portfolio, undertaking preclinical studies and clinical trials and providing general and administrative support for these activities. The Company has not generated any product revenue related to its primary business purpose to date and is subject to a number of risks similar to those of other early stage companies, including dependence on key individuals, regulatory approval of product candidates, uncertainty of market acceptance of products, if approved, competition from substitute products and larger companies, compliance with government regulations, protection of proprietary technology, dependence on third parties, product liability and the need to obtain adequate additional financing to fund the development of its product candidates.

Initial Public Offering

On September 10, 2025, the Company’s Registration Statement on Form S‑1 (File No. 333‑289812) for its initial public offering (the “IPO”) was declared effective, and on September 12, 2025, the Company closed the IPO and issued 21,850,000 shares of common stock at a price to the public of $15.00 per share, including 2,850,000 shares issued upon the exercise in full of the underwriters’ over-allotment option to purchase additional shares. The Company received gross proceeds of $327.8 million. Net proceeds were $302.3 million, after deducting underwriting commissions and other offering costs totaling $25.4 million. Immediately prior to the IPO closing, all of the outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into an aggregate of 3,191,334 shares of the Company’s common stock, including 391,986 additional shares issuable upon conversion of Series C preferred stock due to certain anti‑dilution adjustments.

Reverse Stock Split

On September 8, 2025, the Company effected a 1‑for‑27.8874 reverse stock split of the shares of common stock (the “Reverse Stock Split”). The number of authorized shares and par value per share were not adjusted as a result of the Reverse Stock Split. No fractional shares were issued; stockholders entitled to a fractional share received a cash payment in lieu thereof. All references to shares, equity awards and options (including exercise prices), share data, per share data, and related information contained in the financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented.

Emerging Growth Company and Smaller Reporting Company Status

The Company is an "emerging growth company" as defined in the JOBS Act and may remain an emerging growth company for up to five years following the completion of its IPO. For so long as the Company remains an emerging growth company, it is permitted to and intends to rely on certain exemptions from various public company reporting requirements, including not being required to have its internal control over financial reporting audited by its independent registered public accounting firm pursuant to Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute payments not previously approved. Accordingly, the information contained herein may be different than the information received from other public companies.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period, and therefore, is not subject to the same requirements to adopt new or revised accounting standards as other public companies that are not emerging growth companies; however, the Company may adopt certain new or revised accounting standards early. The Company will remain an "emerging growth company" until the earliest to occur of: (i) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenue; (ii) the date on which the Company first qualifies as a large accelerated filer under the rules of the SEC; (iii) the date on which the Company has, in any prior three-year period, issued more than $1.0 billion in non-convertible debt securities; and (iv) the last day of the fiscal year following the fifth anniversary of the consummation of the Company's IPO.

The Company is also a "smaller reporting company" as defined in the Exchange Act. The Company may continue to be a smaller reporting company even after it is no longer an emerging growth company. The Company may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of the Company's second fiscal quarter, or the Company's annual revenue is less than $100.0 million during the most recently completed fiscal year and the voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of the Company's second fiscal quarter.