Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 451

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 451
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 an increase or decrease of $0.04 million to the quarterly amortization amount as presented in the unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2025, assuming a weighted average estimated useful life of 12.8 years. A 10% increase or decrease in the estimated fair value of the intangible assets would cause an increase or decrease of $0.2 million to the annual amortization amount as presented in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024, assuming a weighted average estimated useful life of 12.8 years. 4(n) Reflects a non-recurring adjustment to record the total estimated merger-related transaction costs of approximately $2.4 million expected to be incurred by Channel, net of $1.8 million accrued in Channel’s historical statement of operations for the three months ended March 31, 2025. Direct transaction costs are expensed as incurred and these additional transaction costs are reflected as if incurred on January 1, 2024, the date the Merger is assumed to have been completed for the purposes of the unaudited pro forma condensed combined statement of operations. 4(o) Reflects the removal of interest expense associated with the Ligand Bridge Loan and PIPE Investor Bridge Loans executed in March and April 2025, respectively, which are expected to be repaid as part of the PIPE Financing as discussed in Note 4(e). 4(p) Reflects the removal of interest expense associated with Channel’s loan payable expected to be converted into common shares or repaid at or prior to closing of the Transactions as discussed in Note 4(k). 4(q) No income tax adjustment is reflected for the three months ended March 31, 2025 and year ended December 31, 2024 based on combined estimated annual effective tax rate and having a full valuation allowance on the combined net deferred tax asset. 4(r) Represents the expected impact of equity-based compensation granted in April 2025 in contemplation of the Merger and the expected impact of the accelerated vesting of certain equity-based compensation awards upon closing of the Merger. 4(s) Pro forma basic and diluted net income (loss) per share has been adjusted to reflect the pro forma adjustments herein for the three months ended March 31, 2025 and year ended December 31, 2024. Weighted average shares outstanding are based on Channel’s weighted average shares outstanding for the