Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 111

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 (the “IP Assignment and Assumption Agreement”) with Pharmaceutical Sub, as assignee, pursuant
to which the Company irrevocably conveyed, transferred and assigned of the Company’s interests in, to and under the Intellectual
Property Rights, including without limitation, the specific intellectual property rights and Know How set forth in the Contribution
Agreement, together with any and all goodwill associated with such intellectual property rights (collectively, the “Assigned
IP”). Pharmaceutical Sub accepted the conveyance, transfer and assignment of the Assigned IP as of the Contribution Date.

Royalty
Agreements

As
an inducement to enter into the Securities Purchase Agreement, the Company and LNHC, as Seller Parties, and Nomis RoyaltyVest
LLC (“NRV”) entered into a Purchase and Sale Agreement, dated as of July 1, 2025 (the “ZELSUVMI Royalty Agreement”),
pursuant to which the Company and LNHC sold to NRV, and NRV purchased, all of the Company’s and LNHC’s rights, title
and interest in and to a portion of the Company’s and LNHC’s revenue payments for ZELSUVMI and all accounts with respect
thereto. In addition, prior to the expiration of the Initial Royalty Term (as defined in the ZELSUVMI Royalty Agreement), NRV
will receive a 1.5% royalty on net sales of ZELSUVMI worldwide, other than in Japan, and 3.46% of non-royalty sublicensing payments
received by LNHC for its sublicensing of rights to ZELSUVMI, and (ii) after the expiration of the Initial Royalty Term, NRV will
receive a 1.2% royalty on net sales of ZELSUVMI worldwide, other than in Japan, and 3.46% of non-royalty sublicensing payments
received by LNHC for its sublicensing of rights to ZELSUVMI.

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On
July 1, 2025, the Company and Pharmaceutical Sub, as Seller Parties and NRV, Ligand, and Madison Royalty LLC, a Colorado limited
liability company, on behalf of certain of the Company’s management team and other assignees (“Madison”) entered
into a Purchase and Sale Agreement (the “Channel Products Royalty Agreement”), pursuant to which the Company and Pharmaceutical
Sub sold to each of NRV, Ligand, and Madison, and each of N