Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 108

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 108
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Officer as the sole and managing member as of September 30, 2025), entered into a Purchase and Sale Agreement (the “Channel
Products Royalty Agreement”), pursuant to which the Company sold to each of NRV, Ligand, and Madison, and each of NRV, Ligand,
and Madison purchased, all of the Company’s rights, title and interest in and to a portion of the Company’s revenue
payments all accounts related to or utilizing the covered products, as defined within that agreement (the “Channel Covered
Products”). The purchase price was $1,000.

Under
the terms of the Channel Products Royalty Agreement, (A) prior to the expiration of the Initial Royalty Term, (i) NRV will receive
a 5.3% royalty, Ligand will receive a 1.7% royalty and Madison will receive a 1.5% royalty on Net Sales (as defined in the Channel
Products Royalty Agreement) of the Channel Covered Products worldwide, and (ii) NRV will receive 12.23%, Ligand will receive 3.92%
and Madison will receive 3.46% of non-royalty sublicensing payments received by Pharmaceutical Sub for its sublicensing of rights
to the Channel Covered Products worldwide; and (B) after the expiration of the Initial Royalty Term, (i) NRV will receive a 4.24%
royalty, Ligand will receive a 1.36% royalty and Madison will receive a 1.2% royalty on Net Sales of the Channel Covered Products
worldwide, and (ii) NRV will receive 12.23%, Ligand will receive 3.92% and Madison will receive 3.46% of non-royalty sublicensing
payments received by Pharmaceutical Sub for its sublicensing of rights to the Channel Covered Products worldwide. The Initial
Royalty Term is defined as, on a country-by-country basis, the period of time commencing on the Effective Date and continuing
until the expiration or termination of the last to expire valid claim of the patents that cover the Channel Covered Products.

Sato
Agreement

On
January 12, 2017, Novan entered into a license agreement, and related first amendment with Sato, relating to SB204, its drug candidate
for the treatment of acne vulgaris in Japan (the “Sato Agreement”). Pursuant to the Sato Agreement, Novan granted
to Sato an exclusive,