Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 24

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 more than 49.9% in the case of Ligand or 4.99%, in the case of the other
PIPE Investors (the “Maximum Percentage”), of the number of shares of the Company’s Common Stock outstanding
immediately after giving effect to such exercise, provided, however, that a holder may increase or decrease the Maximum Percentage
by giving 61 days’ notice to the Company, but not to any percentage in excess of 9.99%.

The
shares of Series A Preferred Stock to be issued and sold to the PIPE Investors were not registered under the Securities Act and
were issued and sold in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the Securities
Act as a transaction by an issuer not involving a public offering.

The
closing of the PIPE Financing occurred on July 1, 2025, immediately prior to the consummation of the Merger

On
July 1, 2025, certain PIPE Investors entered into Series A Convertible Preferred Stockholder Side Letters (each, a “Side
Letter”) with the Company, pursuant to which, immediately after the closing of the PIPE Financing on July 1, 2025, the PIPE
Investors converted 23,810 shares of Series A Preferred Stock not exceeding such PIPE Investors’ Maximum Percentage into
an aggregate of 2,381,000 shares of the Company’s Common Stock (after giving effect to the Reverse Stock Split), by providing
the Company with a completed and signed Conversion Notice under the Certificate of Designation.

Options

During
the three months ended June 30, 2025 and 2024, the Company granted 7,899 and 63,400 stock options related to the Company’s
common stock, respectively. 

During
the six months ended June 30, 2025 and 2024, the Company granted 7,899 and 63,400 stock options related to the Company’s
common stock, respectively. 

With
certain adjustments outlined below, the Company based its determination of the underlying fair value of the Company’s Common
Stock on the findings of an independent third party engaged by the Company to determine the fair value of the Company’s
intellectual property. The Company had the analysis conducted in conjunction with the Contribution Agreement, which was executed
on August 10, 2022. The analysis determined that the fair value of the Company’s intellectual property was $44.8 million.
At the time of