Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 696

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 696
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 earnings. We will be subject to numerous
risks inherent in the business and operations of financially unstable and early stage or emerging growth companies. We have not
yet commercialized any products, and we do not expect to generate revenue from product sales of any of our compounds for several
years.

Cash
totaled $0.5 million and $0.1 million as of December 31, 2024 and December 31, 2023, respectively. As of December 31, 2024 and
December 31, 2023, we had an accumulated deficit of approximately $21.5 million and $13.5 million, respectively, and had a working
capital deficit of approximately $2.7 million and $6.4 million, respectively.

Historically,
we have funded our operations from a series of cash advances from Chromocell Holdings, licensing arrangements, bridge and note
issuances and grants from the National Institutes of Health.

76 

On
February 8, 2024, we and certain affiliates of the Representative entered into amendments to the senior secured convertible notes
issued to such affiliates of the Representative in the April Bridge Financing and September Bridge Financing to remove the automatic
conversion features from such notes (the “Bridge Financing Note Amendments”). Under the Bridge Financing Note Amendments,
both notes issued in the April Bridge Financing and the September Bridge Financing had a maturity date of March 1, 2024, and the
full principal amount of both notes and any accrued interest thereon was payable solely in cash upon the consummation of the IPO.
Both notes had an annual interest rate of eight percent (8%), which accrued daily, and was calculated on the basis of a 360-day
year (consisting of twelve 30 calendar day periods).

On
February 10, 2024, we entered into a Stock Rescission Agreement with certain affiliates of the Representative (the “Stock
Rescission Agreement” and, together with the Bridge Financing Note Amendments, the “Representative Affiliate Transactions”),
pursuant to which we rescinded 111,129 shares of our Common Stock held by such affiliates of the Representative and agreed to
refund an aggregate of $91,513 paid by such affiliates of the Representative in consideration therefor within 30 days of the effective
date of the Stock Rescission Agreement. At September 30, 2024, all such amounts have
been paid pursuant to the Representative Affiliate Transactions and there are no remaining obligations thereto.