Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 57

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 57
---
 
     (3,225) 
    $13.00 

    Forfeited 
     —  
    $— 

    Non-vested at September 30, 2024 
     22,575  
    $13.00 

NOTE
11 - COMMITMENTS AND CONTINGENCIES

From
time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The
Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can
be reasonably estimated.

The
Company has entered into, and expects to continue to enter into, contracts in the normal course of business with various third
parties who support its development work, commercialization activities, including drug product manufacturing, technical transfers,
finished commercial product production and supportive costs. The scope of the services under these agreements can generally be
modified at any time, and these agreements can generally be terminated by either party after a period of notice and receipt of
written notice. There have been no material contract terminations as of September 30, 2025.

NOTE
12 - INCOME TAXES

On
July 4, 2025, the President signed into law the One Big Beautiful Bill Act, a budget reconciliation package that changes many
key provisions of the U.S. federal income tax code, including extensions of various expiring provisions from the Tax Cuts and
Jobs Act of 2017. The Company is evaluating the impact on the Company’s financial statements from this legislation and the
anticipated forthcoming administrative guidance. The Company expects the most significant impact to the Company of the new legislation
will be to allow for more taxpayer-favorable treatment of research and development expenditures for U.S. income tax purposes.

The
Company’s condensed consolidated financial statements have a full valuation allowance related to its deferred tax assets.
The Company's effective tax rate may vary from the U.S. federal statutory tax rate due to future changes in the valuation allowance.
The effective tax rate was 3% and zero for the three months ended September 30, 2025 and 2024, and 2% and zero for the nine
months ended September 30, 2025 and 2024, respectively. The current U.S. federal statutory tax rate is 21%.

    36

As
part of the Merger, the Company recorded a deferred tax liability of $13,331 as of July 1, 2025