Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 394

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 394
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 for an aggregate amount of $6 million. This loan will accumulate interest on a risk-free rate, and will be either payable back to the lenders, or reduce their funding commitment with respect to the anticipated merger transaction.

Following the closing of the Merger, our capital structure and sources of liquidity will change significantly from our historical capital structure, and Ligand will no longer be a source of liquidity for us. Following the closing of the Merger, our only sources of liquidity will be cash on hand and cash to be generated from product sales. We expect to continue to incur losses for the foreseeable future, as we continue to invest in commercialization activities for ZELSUVMI, add operational, financial and management information systems and personnel to support our operations and incur additional costs associated with operating as a public company.

Our ability to continue our operations is dependent upon our ability to obtain additional capital in the future and generate cash flows from operations. Based on our current business plan, we expect to be able to obtain additional debt and equity capital on market terms in the near future in the amounts that will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. However, our assumptions about the availability of financing may prove to be incorrect, and such additional financing may not be available on terms acceptable to us or at all. In addition, we may utilize our available financial resources sooner than we currently expect. We will need to raise additional capital in the future if we decide to expand our business to develop other product candidates, or to pursue strategic investments or acquisitions, and we may consider raising additional capital to take advantage of favorable market conditions or financing opportunities or for other reasons.

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Our future capital requirements will depend on many factors, including, but not limited to:

| • | The level of sales achieved from the commercialization of ZELSUVMI for the treatment of molluscum contagiosum; |

| • | the costs of commercializing ZELSUVMI, including our business development and marketing efforts; |

| • | the effect of competing products and other market developments; |

| • | the extent to which we acquire or seek to develop other product candidates; |

| • | the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patents and other intellectual property and proprietary rights, and |

| • | our efforts to enhance operational systems and hire additional personnel to satisfy our obligations as a public company. |

We anticipate that our principal uses of cash