Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1014

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1014
---
 of accrued interest 
    $3,344  
    $— 

    Shares issued for payment of principal on loan payable 
    $23,788  
    $— 

The
accompanying notes are an integral part of these consolidated financial statements.

F-6 

CHANNEL
THERAPEUTICS CORP

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE
1 – ORGANIZATION AND NATURE OF BUSINESS

Company
Background

Channel
Therapeutics Corporation (“Channel” or the “Company”) was incorporated in the State of Delaware on
March 19, 2021. On August 10, 2022, the Company entered into that certain Contribution Agreement (the “Contribution Agreement”)
with Chromocell Corporation, a Delaware corporation (“Chromocell Holdings”), pursuant to which, effective July 12,
2022 (the “Contribution Date”), Chromocell Holdings contributed all assets and liabilities related to Chromocell Holdings’
historical therapeutic business, including all patents, pre-clinical and Phase I study results and data, and trade secrets related
to the CC8464 compound to the Company (See Note 4). On October 22, 2024, the Company’s shareholders approved a reincorporation
merger of the Company in the State of Nevada with and into Channel Therapeutics Corporation, wholly-owned subsidiary of the Company,
with Channel Therapeutics Corporation remaining as the surviving corporation immediately following the reincorporation merger
(the “Reincorporation Merger”). The Reincorporation Merger occurred on November 18, 2024.

The
Company is a clinical-stage biotech company focused on developing and commercializing new therapeutics to alleviate pain. The
Company’s clinical focus is to selectively target the sodium ion-channel known as “NaV1.7”, which has been genetically
validated as a pain receptor in human physiology. A NaV1.7 blocker is a chemical entity that modulates the structure of the sodium-channel
in a way to prevent the transmission of pain perception to the central nervous system (“CNS”). The Company’s
goal is to develop a novel and proprietary class of NaV blockers that target the body’s peripheral nervous system.

    F-7 

Overview

The
Company has a limited operating history and has not generated revenue from its intended operations. The Company’s business
and operations are sensitive to general business and economic conditions in the U.S. and worldwide along