Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 517

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 517
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 made by management include, but are not limited to, estimating the valuation of deferred income taxes. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2024 and December 31, 2023, the Company did not have any cash equivalents. As of December 31, 2024, the Company had deposits in excess of federally insured limits. Research and Development The Company incurs research and development (“R&D”) costs during the process of researching and developing technologies and future offerings. The Company expenses these costs as incurred unless such costs qualify for capitalization under applicable guidance. The Company reviews acquired R&D and licenses to determine if they should be capitalized or expensed under U.S. GAAP standards. Below is a disaggregation of R&D expenses:

|                                              |     | For the Year Ended 
  December 31, 2024 |     | For the Year Ended 
  December 31, 2023 |
|:---------------------------------------------|:----|-------------------:|:----|-------------------:|
| Consultant                                   |     |           $286,680 |     |            $68,900 |
| Lab Materials                                |     |              1,818 |     |                  — |
| Lab Cell Storage                             |     |             88,662 |     |             48,572 |
| Chemistry Manufacturing and Controls (“CMC”) |     |            642,304 |     |                  — |
| IP Services                                  |     |            159,972 |     |          2,461,946 |
| Total                                        |     |         $1,179,436 |     |         $2,579,418 |

F-31

TABLE OF CONTENTS

Fair Value Measurements and Fair Value of Financial Instruments The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

| • | Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. |

| • | Level 2 Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable