Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 40

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 amount of $163 (the “June
Bridge Note”) to the Holder, for a purchase price of $125, pursuant to which the Company promises to pay the Holder or its
registered assigns the principal sum of $163 or such amount equal to the outstanding principal amount of the June Note together
with interest. During the three months ended September 30, 2025, the Company
repaid $163 in principal and all of accrued
interest related to the June Bridge Note. As of September 30, 2025, the
June Bridge Note has been satisfied in full and no amounts remain outstanding.

Related
Party Note

On
May 10, 2024,
the Company and Camden Capital LLC, a company controlled by Mr. Knuettel, the Company’s Chief Financial Officer, converted
certain payables into a promissory note for $132. During the three months ended September 30,
2025 the Company repaid $32 in principal and $8 of accrued
interest related to the Related Party Note. In addition, as described in Note 1 —
“Organization and Description of Business”, as part of the Merger and PIPE Financing,
$100 of principal related to this note was converted into 10,000 shares of Common Stock.

As
of September 30, 2025, the
Related Party Note has been satisfied in full and no amounts remain outstanding.

NOTE
7 – REEDY CREEK LIABILITY

As
described in Note 1 — “Organization and Description of Business”, the Company’s wholly owned subsidiary, LNHC,
was formed in September 2023 to execute Ligand’s acquisition of certain assets and liabilities from Novan in a 363 transaction.
Per the 363 transaction, certain Novan agreements were assumed by LNHC and as of the Merger as of July 1, 2025, LNHC had certain
obligations related to agreements with Reedy Creek Investments LLC (“Reedy Creek”).

    26

Background

On
April 29, 2019, Novan entered into a royalty and milestone payments purchase agreement (the “Reedy Creek Purchase Agreement”)
with Reedy Creek, pursuant to which Reedy Creek provided funding to Novan in an amount of $25,000 for it to pursue the development,
regulatory approval and commercialization activities (including through out-license agreements and other third-party arrangements)
for SB206, a topical gel with anti-viral properties being developed as a treatment for moll