Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 75

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 75
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4 (the “Reincorporation Merger Agreement”). All information disclosed in this Form 10-Q for periods prior to the
Reincorporation Merger Effective Date relates to the Predecessor, and all information disclosed in this Form 10-Q for periods
after the Reincorporation Merger Effective Date relates to Channel Therapeutics Corporation, a Nevada corporation.

On
August 10, 2022, we entered into the Contribution Agreement with Chromocell Holdings.
Pursuant to the Contribution Agreement, as of the Contribution Date, we acquired from Chromocell Holdings all assets, liabilities
and results of operations related to Chromocell Holdings’ therapeutic business, including all patents, pre-clinical and
Phase I study results and data, and trade secrets related to the CC8464 compound, in exchange for the issuance by us of 1,111,112
shares of our common stock, par value $0.0001 per share (“Common Stock”)
and (ii) 600,000 shares of Series A Convertible Preferred Stock (“Series
A Preferred Stock”).

On
August 2, 2023, we entered into a Side Letter to the Contribution Agreement with Chromocell Holdings (the “Holdings Side
Letter”). Pursuant to the Holdings Side Letter, upon closing of our initial public offering (“IPO”): (a) Chromocell
Holdings re-assumed all $1.6 million in direct liabilities previously assumed by the Company in accordance with the Contribution
Agreement, (b) Chromocell Holdings waived the Company’s obligations to make a cash payment in the amount of $0.6 million
to Chromocell Holdings, and (c) in consideration thereof, we issued to Chromocell Holdings 2,600 shares of  Series C Preferred
Stock.

27

On
February 21, 2024, we completed the IPO and issued and sold 1,100,000 shares of Common Stock at a price to the public of $6.00
per share. The aggregate net proceeds from the IPO were approximately $5.7 million after deducting underwriting discounts and
commissions of approximately $0.5 million and offering expenses of approximately $0.4 million.

In
connection with the completion of the IPO: (A) we effected the 9-for-1 reverse stock split effective February 15, 2024 (the “Reverse
Stock Split”) of our shares of Common