Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 349

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 349
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 additional capital in order to operate in the normal course of business and fund clinical studies. The IPO closed on February 21, 2024, from which, Channel received net proceeds from the IPO of approximately $5.7 million after deducting the underwriting discounts and commissions and offering expenses payable by Channel (excluding any exercise of the warrants issued to A.G.P./Alliance Global Partners (the “Representative”) or its designees, in connection with the IPO). Based on Channel’s current projections, management believes there is substantial doubt about its ability to continue to operate as a going concern and fund its operations through at least the next twelve months following the issuance of these consolidated financial statements. While Channel will continue to invest in its business and the development of CC8464, CT2000 and CT 3000, and potentially other molecules, it is unlikely that Channel will generate product or licensing revenue during the next twelve months. During the period, Channel completed its initial public offering, raising $5.7 million, after deducting the underwriting discounts and commissions and offering expenses, and Channel may need to raise additional funds through either strategic partnerships or the capital markets. However, there is no assurance that Channel will be able to raise such additional funds on acceptable terms, if at all. If Channel raises additional funds by issuing securities, existing stockholders may be diluted. Results of Operations Comparison of the Three Months Ended March 31, 2025 and 2024 The following table summarizes Channel’s results of operations for the three months ended March 31, 2025 and 2024:

|                                            |     | Three Months Ended March 31, 2025 and 2024 
                                       2025 |     |       2024 |     | $ Change |     | % Change |
|:-------------------------------------------|:----|-------------------------------------------:|:----|-----------:|:----|---------:|:----|:---------|
| OPERATING EXPENSES                         |     |                                            |     |            |     |          |     |          |
| General and administrative expenses        |     |                                 $1,090,049 |     |   $787,561 |     | $302,488 |     | 38%      |
| Research and development                   |     |                                    194,298 |     |    466,606 |     | -272,308 |     | (58)%    |
| Professional fees                          |     |                                    549,630 |     |    679,815