Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 53

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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set forth in the CEF Purchase Agreement, from time to time during the term of the CEF Purchase Agreement. Concurrently with the
execution of the CEF Purchase Agreement, the Company and Tikkun also entered into a Registration Rights Agreement, dated as of
July 26, 2024, pursuant to which the Company agreed to file with the SEC one
or more registration statements, to register under the Securities Act, the offer and resale by Tikkun of all of the Purchase Shares
that may be issued and sold by the Company to Tikkun from time to time under the CEF Purchase Agreement. On October 2,
2024, the Company tendered 7,632 shares to Tikkun for $46 and on October 18,
2024, the Company tendered 7,965 shares to Tikkun for $63.

Warrants

On
February 21, 2024, the Company issued warrants to purchase up to 5,500 shares of Common Stock to the representative of the underwriters
of the IPO. These warrants had an exercise price of $75.00, have a cashless exercise provision, were exercisable 180 days following
the commencement of sales of the shares of Common Stock of the IPO and have an expiration date of February 21, 2029. 

On
September 18, 2025, these warrants were repriced to $33.31 per share. This modification resulted in a difference in fair value
of $31 which was reflected in additional paid in capital, with no net impact, due to the equity treatment of these warrants associated
with the IPO equity issuance cost.

Stock
Based Compensation

Stock
Compensation Expense

The
2023 Plan provides for the grant of the following awards: (i) incentive stock options, (ii) nonstatutory stock options, (iii)
SARs, (iv) restricted stock awards, (v) restricted stock unit awards and (vi) other stock awards. Eligible plan participants include
employees, directors, and consultants.

Options
to purchase the Company’s common stock may be granted at a price no less than the fair value of a common stock share on
the date of grant. The Black-Scholes option-pricing model uses the common stock fair value based on the closing sales price for
a share as quoted on any established securities exchange for such grant date or the last preceding date for which such quotation
exists. Vesting terms of options issued are determined