Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 570

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 570
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    $2,579,418  
    $(1,399,982) 
     (54)%

The
Company incurred less research and development expenses for the year ended December 31, 2024, as compared to the corresponding
period in 2023 primarily as a result of a decrease in IP services of $2,301,974.

Professional
Fees

We
incurred professional expenses for the years ended December 31, 2024 and 2023 of $2,281,968 and $1,543,918, respectively. For
the year ended December 31, 2024, compared to the same period in 2023, this represented an increase of $738,050, or 48%, as a
result of higher auditing and legal expenses associated with the Company operating as a public company since February 2024.

Other
(Expense) Income

We
incurred other expense for the year ended December 31, 2024 of $383,889 as compared to other expense for the year ended December
31, 2023 of $518,509. For the year ended December 31, 2024, compared to the same period in 2023, this represented a decrease
of $134,620 or 26%. The other expense for the years ended December 31, 2024
and 2023 was primarily the result of increased interest expense, net of a gain on default judgement of $363,091. The increase
in the interest expense was due to the remaining amortization of the debt discount on the Company’s notes being accelerated
upon the conversion of the notes to equity upon consummation of the IPO.

Liquidity

Sources
of Liquidity and Capital

We
are in our early stages of development and growth, without established records of sales or earnings. We will be subject to numerous
risks inherent in the business and operations of financially unstable and early stage or emerging growth companies. We have not
yet commercialized any products, and we do not expect to generate revenue from product sales of any of our compounds for several
years.

Cash
totaled $0.5 million and $0.1 million as of December 31, 2024 and December 31, 2023, respectively. As of December 31, 2024 and
December 31, 2023, we had an accumulated deficit of approximately $21.5 million and $13.