Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 357

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 357
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 |     |                                 $(632,126) |     | $(1,991,893) |     | $(1,359,767) |     | (68)%    |
| Net cash provided by financing activities |     |                                    250,000 |     |    5,665,731 |     |    5,415,731 |     | (96)%    |
| Net increase in cash                      |     |                                 $(382,126) |     |   $3,673,838 |     |   $4,055,964 |     | (110)%   |

Net Cash Used in Operating Activities For the three months ended March 31, 2025, Channel incurred a net loss of $1,967,611, and net cash flows used in operating activities was $632,126. The cash flow used in operating activities was primarily due to a net loss of $1,967,611, offset by stock-based compensation expense of $485,631, amortization of debt discount of $94,213, a change in account payable and accrued expense of $706,478, and by a change in prepaid expenses of $48,963. For the three months ended March 31, 2024, Channel incurred a net loss of $2,562,330, and net cash flows used in operating activities was $1,991,893. The cash flow used in operating activities was primarily due to a net loss of $2,562,330, offset by stock-based compensation expense of $292,552, amortization of debt discount of $605,630, a change in account payable and accrued expense of $90,994, change in prepaid expenses of $220,930 and an increase in accrued compensation in the amount of $152,023.

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Net Cash (Used in) Provided by Investing Activities Channel neither received nor used cash in investing activities during the three months ended March 31, 2025 and 2024. Net Cash Provided by Financing Activities For the three months ended March 31, 2025, net cash flows provided by financing activities were $250,000 resulting from net proceeds from loans. For the three months ended March 31, 2024, net cash flows provided by financing activities were $5,665,731 resulting from payments from loans of $214,757, net proceeds from Channel common stock issued for cash of $5,972,000, and payment of recission on stock of $91