Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 187

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 187
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636.

For
the six months ended June 30, 2024, we incurred a net loss of $4,333,949, and net cash flows used in operating activities was
$4,944,308. The cash flow used in operating activities was primarily due to a net loss of $4,333,949, offset by stock-based compensation
expense of $751,530, amortization of debt discount of $605,630, a change in account payable and accrued expense of $1,481,113,
change in prepaid expenses of $158,102, an increase in accrued compensation in the amount of $282,518, and an increase in due
from Chromocell Corporation of $45,786.

Net
Cash (Used in) Provided by Investing Activities

The
Company neither received nor used cash in investing activities during the six months ended June 30, 2025 and 2024.

Net
Cash Provided by Financing Activities

For
the six months ended June 30, 2025, net cash flows provided by financing activities were $625,000 resulting from net proceeds
from loans.

For
the six months ended June 30, 2024, net cash flows provided by financing activities were $7,253,015 resulting from net proceeds
from common stock issued for cash of $5,972,000, proceeds from loans of $1,587,284, partially offset by payment of recission on
stock of $91,512 and payments on loans of $214,757. 

Off-Balance
Sheet Arrangements

During
the six months ended June 30, 2025 and 2024, we did not have, and we do not currently have, any off-balance sheet arrangements,
as defined under applicable SEC rules.

Critical
Accounting Estimates

The
following discussions are based upon our consolidated financial statements, which have been prepared in accordance with accounting
principles generally accepted in the United States.

The
preparation of these consolidated financial statements requires management to make estimates, judgments and assumptions that affect
the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingencies. We continually evaluate
the accounting policies and estimates used to prepare the consolidated financial statements. We base our estimates on historical
experiences and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could
differ from these estimates made by management.

See
Note 3 – Summary of Significant Accounting Policies to the