Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 814

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 814
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 Holdings (the “Holdings Side
Letter”). Pursuant to the Holdings Side Letter, upon closing of our initial public offering (“IPO”): (a) Chromocell
Holdings re-assumed all $1.6 million in direct liabilities previously assumed by the Company in accordance with the Contribution
Agreement, (b) Chromocell Holdings waived the Company’s obligations to make a cash payment in the amount of $0.6 million
to Chromocell Holdings, and (c) in consideration thereof, we issued to Chromocell Holdings 2,600 shares of  Series C Preferred
Stock.

72 

On
February 21, 2024, we completed the IPO and issued and sold 1,100,000 shares of Common Stock at a price to the public of $6.00
per share. The aggregate net proceeds from the IPO were approximately $5.7 million after deducting underwriting discounts and
commissions of approximately $0.5 million and offering expenses of approximately $0.4 million.

In
connection with the completion of the IPO: (A) we effected the 9-for-1 reverse stock split effective February 15, 2024 (the “Reverse
Stock Split”) of our shares of Common Stock, (B) all 600,000 issued and outstanding shares of our Series A Preferred Stock
automatically converted into 499,429 shares of Common Stock, (C) $389,757 and accrued interest of approximately $28,336 as of
February 21, 2024 outstanding under our senior secured convertible notes issued in a
bridge financing in April 2023 for an aggregate principal amount of $393,808 (the “April Bridge Financing”)
after giving effect to the Representative Affiliate Transactions (as defined below), automatically converted into approximately
87,109 shares of Common Stock, (D) $197,421 and accrued interest of $8,169 as of February 21, 2024 outstanding under our senior
secured convertible notes issued in a bridge financing in September 2023 for an aggregate
principal amount of $198,128 (the “September Bridge Financing” and together with the April Bridge Financing, the “Bridge
Financings”) after giving effect to the Representative Affiliate Transactions, automatically converted into
approximately 43,385 shares of Common Stock, which includes an additional 549 shares of Common Stock issuable as consideration
for the September Bridge Financing (the “Bonus Shares”), (E)