Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1316

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1316
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 us to, among other things, delay, scale
back or eliminate expenses including some or all of our planned development. There is substantial doubt about our ability to continue
as a going concern.

Cash
Flows

The
following table summarizes our cash flows for the years ended December 31, 2024 and 2023:

    Years Ended December 31, 2024 and 2023 

    2024  
    2023  
    $ Change  
    %
                                                                               Change 

    Net cash used in operating activities 
    $(5,792,483) 
    $(981,031) 
    $(4,811,452) 
     490%

    Net cash provided by financing activities 
     6,209,535  
     1,022,348  
     5,187,187  
     507%

    Net increase in cash 
    $417,052  
    $41,317  
    $375,735  
     909%

Net
Cash Used in Operating Activities

78 

For
the year ended December 31, 2024, we incurred a net loss of $7,955,338, and net cash flows used in operating activities was $5,792,483.
The cash flow used in operating activities was primarily due to a net loss of $7,955,338, offset by stock-based compensation expense
of $1,799,295, amortization of debt discount of $692,020, a change in account payable and accrued expense of $1,178,573, offset
by a change in prepaid expenses of $65,300, a change of $45,786 in due from Chromocell Corporation, and a change in accrued compensation
in the amount of $282,856, and deferred offering costs of $750,000.

For
the year ended December 31, 2023, we incurred a net loss of $7,380,793, and net cash flows used in operating activities was $981,031.
The cash flow used in operating activities was primarily due to a net loss of $7,380,793, offset by stock-based compensation expense
of $1,733,233, shares issued for license of $2,225,733, amortization of debt discount of $188,119, a change in account payable
and accrued expense of $1,627,005, share issuance cost associated with the extension of