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

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 of the Company are subject to examination by the Internal Revenue Service and state taxing
authorities, generally for three years after they were filed. The Company has filed its tax returns for the year ended December
31, 2023 and after review of the prior year consolidated financial statements and the results of operations through December 31,
2024, the Company has recorded a full valuation allowance on its deferred tax asset.

Recently
Issued Accounting Pronouncements

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated
information about a reporting entity’s effective tax rate reconciliation, as well as information related to income taxes
paid to enhance the transparency and decision usefulness of income tax disclosures. This ASU will be effective for the annual
periods beginning after December 15, 2024. The Company is currently evaluating the impact
ASU No. 2023-09 will have on its condensed consolidated financial statements.

In November 2024, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, "Disaggregation of
Income Statement Expenses," which requires disclosures of certain disaggregated income statement expense captions into specified
categories within the footnotes to the financial statements. The requirements of the ASU are effective for annual periods beginning
after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements
will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact ASU
No. 2024-03 will have on its condensed consolidated financial statements.

NOTE
4 – RELATED PARTY TRANSACTIONS

Due
from/to Chromocell Holdings

As
of March 31, 2025 and December 31, 2024, the Company had a $40,400 asset due from Chromocell Holdings. This amount is comprised
of expenses paid by the Company to be reimbursed by Chromocell Holdings. No interest is incurred on these amounts.

Related
Party Note

On
May 10, 2024, the Company and Camden Capital LLC, a company controlled by Mr. Knuettel, the Company’s Chief Executive
Officer and Chief Financial Officer, converted certain payables into a promissory note for $131,868. The note matures