Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 24

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 ion-channel known as “NaV1.7”, which has been genetically validated as a pain
receptor in human physiology. A NaV1.7 blocker is a chemical entity that modulates the structure of the sodium-channel in a way
to prevent the transmission of pain perception to the CNS. Our goal is to develop a novel and proprietary class of NaV blockers
that target the body’s peripheral nervous system. This segment is currently pre-revenue.

The
accounting policies of the clinical-stage biotech segment are the same as those described in the summary of significant accounting
policies.

The
chief operating decision maker assesses performance for the clinical-stage biotech segment and decides how to allocate resources
based on net loss that also is reported on the statement of operations as consolidated net loss.

The
measure of segment assets is reported on the balance sheet as total assets.

The
chief operating decision maker uses net loss to evaluate spending in deciding how funds should be allocated in preforming the
Company’s research and development. Net loss is used to monitor budget versus actual results.

The
Company has one reportable segment: clinical-stage biotech. This segment performs research and development for biotech products.
Since the Company only has one segment, the segment information is the same as the consolidated financials.

The
Company’s chief operating decision maker is the chief executive officer, with such individual also holding the position
of chief financial officer.

19

NOTE
9 – SUBSEQUENT EVENTS

Merger
Agreement

On
April 16, 2025, the Company, CHRO Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of the Company (the “Merger
Sub”), and LNHC, Inc., a Delaware corporation (“LNHC”), and solely for the purposes of Article III thereof,
Ligand Pharmaceuticals Incorporated, a Delaware corporation and the parent of LNHC (“Ligand”) entered into
an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, among other matters, and subject to the
satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into LNHC, with LNHC
continuing as a wholly-owned subsidiary of the Company and the surviving corporation of the merger (the “Merger”).
The Merger is intended to qualify for federal income tax purposes as a tax-free reorganization under the provisions of Section
368(a) of the Internal Revenue Code of 1986, as