Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1050

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1050
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 a substantial annual limitation due to ownership change limitations that may have occurred
or that could occur in the future, as required by the Internal Revenue Code (the “Code”), as amended, as well as similar
state provisions. In general, an “ownership change” as defined by the Code results from a transaction or series of
transactions over a three-year period resulting in an ownership change of more than 50 percent of the outstanding stock of a company
by certain stockholders or public groups.

NOTE
9 – SEGMENT DISCLOSURE

The
clinical-stage biotech segment focused on developing and commercializing new therapeutics to alleviate pain. Our clinical focus
is to selectively target the sodium ion-channel known as “NaV1.7”, which has been genetically validated as a pain
receptor in human physiology. A NaV1.7 blocker is a chemical entity that modulates the structure of the sodium-channel in a way
to prevent the transmission of pain perception to the central nervous system (“CNS”). Our goal is to develop a novel
and proprietary class of NaV blockers that target the body’s peripheral nervous system. This segment is currently pre-revenue.

    F-27 

The
accounting policies of the clinical-stage biotech segment are the same as those described in the summary of significant accounting
policies.

The
chief operating decision maker assesses performance for the clinical-stage biotech segment and decides how to allocate resources
based on net loss that also is reported on the statement of operations as consolidated net loss.

The
measure of segment assets is reported on the balance sheet as total assets.

The
chief operating decision maker uses net loss to evaluate spending in deciding how funds should be allocated in preforming the
Company’s research and development. Net loss is used to monitor budget versus actual results.

The Company has
one reportable segment: clinical-stage biotech. This segment performs research and development for biotech products. Since the
Company only has one segment, the segment information is the same as the consolidated financials.

The Company’s
chief operating decision maker is the chief executive officer, with such individual also holding the position of chief financial
officer.

NOTE
10 – SUBSEQUENT EVENTS

Bridge
Note

On February 25, 2025, the Company issued an unsecured promissory note in the aggregate principal amount
of $325,000 (the “Bridge Note”) to 3i, L.P., a Delaware limited partnership (the “Holder”),