Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 54

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 and actual number of shares repurchased
will depend on a variety of factors including trading price, the Company’s financial performance, corporate and regulatory
requirements and other market conditions. On October 22, 2024, the board of directors authorized an amendment (the “Amendment”)
to the Repurchase Plan to increase the total value of shares of Common Stock available for repurchase by the Company under the
Repurchase Plan by an additional $500,000, to $750,000.

On February 25, 2025, the Company issued
an unsecured promissory note in the aggregate principal amount of $325,000 (the “February Bridge Note”) to the Holder,
for a purchase price of $250,000, pursuant to which the Company promises to pay the Holder or its registered assigns the principal
sum of $325,000 or such amount equal to the outstanding principal amount of the February Bridge Note together with interest. The
February Bridge Note bears interest on the outstanding principal amount at an annual rate equal to 6.0%. The February Bridge Note
may be prepaid by the Company without penalty, in whole or in part, upon two days’ prior written notice to the Holder. All
unpaid principal, together with any then unpaid and accrued interest and other amounts payable under the February Bridge Note,
will otherwise be due and payable on the earliest of: (i) May 25, 2025, (ii) the consummation of a Corporate Event (as defined
in the February Bridge Note), or (iii) when, upon or after the occurrence of an Event of Default (as defined in the February Bridge
Note), such amounts are declared due and payable by the Holder or made automatically due and payable in accordance with the terms
of the February Bridge Note.

Future
Funding Requirements

Our
primary use of cash is to fund clinical development, operating expenses and repay accrued liabilities associated with our IPO
and prior operating expenses.

With
respect to the Company’s future expected operations expenses, the primary expense drivers will be research and development
and management overhead, including costs of being a public company. Of these, research and development is a significant expense
which has been utilized for the furtherance of the Company’s CC8464, CT2000 and CT3000 programs. We have based the research
and development costs on current clinical and pre-clinical trial parameters and expectations on certain existing tax credits,
and there is no certainty that the clinical and pre-clinical