Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 93

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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678) 
     — 

    Total
    interest expense 
    $(1,346) 
    $(39) 
    $(1,307) 
    $(1,698) 
    $(678) 
    $(1,167)

Provision
for Income Taxes

For
the three and nine months ended September 30, 2025, the Company recorded $0.5 million of income tax benefit due to the amortization
of deferred tax liabilities related to intangible assets and inventory as part of the ASC 805 accounting for the acquisition of
LNHC, Inc. See Note 3 — “Acquisition of LNHC, Inc.” for additional details regarding this transaction.

54

Liquidity
and Capital Resources

The
Company is in its early stages of development and growth, without established records of revenues or earnings. The Company will
be subject to numerous risks inherent in the business and operations of early stage or emerging growth companies. The Company
has recently launched its commercial product, ZELSUVMI, in July of 2025. While the Company has generated limited revenues to date,
it does not expect to generate revenue from product revenues to fund its operations for, at minimum, the next 12 months.

During
the three and nine months
ended September 30, 2025, the Company had a net loss of approximately $16.2
million and $21.7 million, respectively. As of September 30, 2025 and December 31, 2024,
the Company had cash of approximately $14.2 million and $0.5 million, respectively, and working capital of $25.0 million and $(2.7)
million, respectively. The Company expects to continue to incur losses for the foreseeable future, as it continues to invest
in commercialization activities for ZELSUVMI, add operational, financial and management information systems and personnel to support
Company operations and incur additional costs associated with operating as a public company. The Company's ability to continue
its operations is dependent upon its ability to obtain additional capital in the future and generate cash flows from operations.

Based
on 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 condensed consolidated financial
statements. While the Company completed the Merger and PIPE Financing in July 2025, the Company expects that costs associated
with the commercial efforts of ZELSUV