Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 54

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 54
---
 by the board of directors or compensation committee of the board. The Company’s
stock options vest based on terms in the stock option agreements and have a maximum term of ten years. The
Company determined the expected volatility assumption for options granted using the historical volatility of comparable public
companies’ common stock. The Company will continue to monitor peer companies and other relevant factors used to measure
expected volatility for future option grants, until such time that the Company’s Common Stock has enough market history
to use historical volatility. The dividend yield assumption for options granted is based on the Company’s history and expectation
of dividend payouts. The Company has never declared nor paid any cash dividends on its Common Stock, and the Company does not
anticipate paying any cash dividends in the foreseeable future. The Company recognizes option forfeitures as they occur as there
is insufficient historical data to accurately determine future forfeiture rates.

    33

The
Company accounts for RSUs based on their estimated fair values on the date of grant. The fair value of RSUs is estimated based
on the closing price of the underlying common stock on the date of grant. Stock-based compensation expense related to the RSUs
is recognized on a straight-line basis over the requisite service period.

The
Company recognizes RSU forfeitures as they occur as there is insufficient historical data to accurately determine future forfeiture
rates.

During
the three and nine months ended September 30, 2025 and 2024, the Company recorded stock-based compensation expense within
the condensed consolidated statements of operations as follows:

    Three months Ended  
    Nine months Ended 

    September 30, 2025  
    September 30, 2024  
    September 30, 2025  
    September 30, 2024 

    Research & development 
    $—  
    $—  
    $—  
    $— 

    Selling, general and administrative 
     2,812  
     437  
     3,662  
     1,110 

    Total 
    $2,812  
    $437  
    $3,662  
    $1,110 

During
the three and nine months ended September 30, 2025 and 2024, the Company recorded stock-based compensation expense based
on the type of award as follows:

    Three months Ended  
    Nine months Ended 

    September 30, 2025