Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 351

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 351
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| Total                                        |     |                             $1,179,436 |     | $2,579,418 |     | $(1,399,982) |     | (54)%    |

Channel incurred less research and development expenses for the year ended December 31, 2024, as compared to the corresponding period in 2023 primarily as a result of a decrease in IP services of $2,301,974. Professional Fees Channel incurred professional expenses for the years ended December 31, 2024 and 2023 of $2,281,968 and $1,543,918, respectively. For the year ended December 31, 2024, compared to the same period in 2023, this represented an increase of $738,050, or 48%, as a result of higher auditing and legal expenses associated with Channel operating as a public company since February 2024.

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#### TABLE OF CONTENTS

#### Other (Expense) Income
Channel incurred other expense for the year ended December 31, 2024 of $383,889 as compared to other expense for the year ended December 31, 2023 of $518,509. For the year ended December 31, 2024, compared to the same period in 2023, this represented a decrease of $134,620 or 26%. The other expense for the years ended December 31, 2024 and 2023 was primarily the result of increased interest expense, net of a gain on default judgement of $363,091. The increase in the interest expense was due to the remaining amortization of the debt discount on Channel’s notes being accelerated upon the conversion of the notes to equity upon consummation of the IPO.

### Liquidity

### Sources of Liquidity and Capital
Channel is in its early stages of development and growth, without established records of sales or earnings. Channel will be subject to numerous risks inherent in the business and operations of financially unstable and early stage or emerging growth companies. Channel have not yet commercialized any products, and Channel does not expect to generate revenue from product sales of any of Channel’s compounds for several years.

Cash totaled $0.1 million and $0.5 million as of March 31, 2025 and December 31, 2024, respectively. As of March 31, 2025 and December 31, 2024, Channel had an accumulated deficit of approximately $23.4 million and $21.5 million, respectively,