Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 391

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 391
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 Analysis of Financial Condition and Results of Operations of LNHC”, section, the “Company” “we,” “us” and “our” refers to LNHC, Inc. and its consolidated subsidiary.

**Separation from Ligand and Merger Agreement with Channel**

Prior to completion of the Merger, LNHC will continue to be a wholly-owned subsidiary of Ligand. We have historically operated as part of Ligand since the Novan Acquisition date on September 27, 2023, and not as a separate, publicly-traded company. Our audited and unaudited financial statements have been derived from Ligand’s historical accounting records and are presented on a carve-out basis. All sales and costs as well as assets and liabilities directly associated with our business activity are included as a component of the audited and unaudited financial statements. The audited and unaudited financial statements also include allocations of certain general, administrative, sales and marketing expenses and cost of sales from Ligand’s corporate office and from other Ligand businesses to us and allocations of related assets, liabilities, and Ligand’s investment, as applicable. We believe the allocations have been determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the audited and unaudited financial statements had we been an entity that operated separately from Ligand during the periods presented. Further, the historical audited and unaudited financial statements may not be reflective of what our results of operations, income (loss), historical financial position, equity or cash flows might be in the future.

We have entered into various agreements with Ligand to provide for the allocation between us and Ligand of Ligand’s assets, employees, liabilities and obligations attributable to periods prior to, at and after the separation and will govern certain relationships between us and Ligand after the separation.

On March 24, 2025, LNHC assigned its IP portfolio to Ligand, and entered into an exclusive license and sublicense agreement with Ligand, pursuant to which Ligand licensed to LNHC the intellectual property rights necessary to make, use, sell or offer to sell ZELSUVMI for the treatment of molluscum contagiosum in humans worldwide, except for Japan. In addition, on March 24, 2025, LNHC and Ligand also entered into a Master Services Agreement under which Ligand, or related parties, may contract with LNHC to provide active pharmaceutical ingredients for clinical or commercial use related to NITRICIL technology. In