Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 533

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 533
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 Notes to November 17, 2023. On November 13, 2023, the Company amended and
restated the October Promissory Notes to further extend the maturity dates of the October Promissory Notes to February 29, 2024.
The Company recognized $24,575 and $10,425, respectively, of amortization of debt discount included in interest expense on
the statements of operations for the years ended December 31, 2024 and 2023. As of December 31, 2024, the October Promissory Notes
have been fully paid off in cash.

Bridge
Financing Note Amendments and Recission Agreement

On
February 8, 2024, the Company and certain affiliates of A.G.P./Alliance Global Partners (“A.G.P.”) entered into amendments
to the senior secured convertible notes issued to such affiliates of the A.G.P. 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 have
a maturity date of March 1, 2024, and the full principal amount of both notes and any accrued interest thereon shall be payable
solely in cash upon the consummation of the IPO. Both notes have an annual interest rate of 8%, which accrues daily, and is calculated
on the basis of a 360-day year (consisting of twelve 30 calendar day periods), giving an effective interest rate of 8.3%. During
the year ended December 31, 2024, the Company issued 81,112 shares of common stock to extend the maturity date of the note, resulting
in an additional debt discount of $447,379.

On
February 10, 2024, the Company entered into a Stock Rescission Agreement with certain affiliates of A.G.P. (the “Stock Rescission
Agreement” and, together with the Bridge Financing Note Amendments, the “Representative Affiliate Transactions”), pursuant
to which the Company rescinded 111,129 shares of Common Stock held by such affiliates of A.G.P. and agreed to refund an aggregate
of $91,512 paid by such affiliates of A.G.P. in consideration therefor within 30 days of the effective date of the Stock Rescission
Agreement. At December 31,