Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 400

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 400
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 28, 2023 to December 31, 2023 (Successor) amounted to $290 thousand, zero, and $1.5 million, respectively. The amount of income tax benefit in both Successor periods presented consists of federal deferred income tax benefit for both Successor periods. We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. We assessed the positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. Our evaluation of evidence resulted in management concluding that the majority of our deferred tax assets will not be realized. Liquidity and Capital Resources Since Ligand’s acquisition of Novan, we have participated in Ligand’s centralized approach to cash management and financing of its operations. Accordingly, none of the Successor cash, cash equivalents, and short-term investments at the corporate level have been assigned to our company in the audited and unaudited financial statements. Prior to separation, transfers of cash to and from Ligand have been reflected in parent company net investment in the historical audited and unaudited balance sheets, audited and unaudited statements of cash flows and audited and unaudited statements of changes in parent company net investment. Effective January 1, 2025, we entered into a bridge loan agreement with Ligand under which any amounts of cash transfers from Ligand to us, or settlement of our expenses directly by Ligand, starting from January 1, 2025, will be considered a loan from Ligand to us. The maximum borrowing under the bridge loan agreement is $18 million. The repayment of this loan at closing of the Merger will be offset against Ligand’s funding commitment in the PIPE Financing. In addition, on April 16, 2025, LNHC entered into a Bridge loan agreement with two third-party lenders, part of the group of strategic investors led by Murchinson, for an aggregate amount of $6 million. This loan will accumulate interest on a risk-free rate, and will be either payable back to the lenders, or reduce their funding commitment with respect to the anticipated merger transaction.

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Following the closing of the Merger, our capital structure and sources of liquidity will change significantly from our historical capital structure, and Ligand will no longer be a source of liquidity for us. Following the closing of the Merger, our only sources of liquidity will be cash on hand and cash