Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 91

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 Company in whole or in part at any time after issuance and prior to the July Note Maturity Date
in cash at a price equal to 110% of the greater of (i) the July Note’s outstanding principal amount, plus all accrued but
unpaid interest and late charges due under the July Note (the “July Note Conversion Amount”) being redeemed as of
the date on which such redemption will occur (the “Company Optional Redemption Date”) and (ii) the product of (1)
the number of July Note Conversion Shares then issuable under the July Note multiplied by (2) the highest closing sale price of
the Common Stock on any trading day during the period commencing on the date immediately preceding the date of the Company Optional
Redemption Notice (as defined below) and ending on the trading day immediately prior to the date the Company makes the entire
payment. The Company may deliver only one notice to exercise its right to require redemption (the “Company Optional
Redemption Notice”) in any given 20 trading day period and each Company Optional Redemption Notice is irrevocable. At any
time prior to the date on which such optional redemption payment is paid in full, the July Note may be converted by the July Note
Holder into shares of Common Stock in accordance with the conversion terms thereof.

As
of June 30, 2025, there was $0  in accrued interest
and $0 unamortized debt discount on the July Note. Interest expense totaled $18,588 for the three months ended June 30, 2025,
compared to $0 for three months ended June 30, 2024. The Company recognized $103,058 and $0, respectively, of amortization
of debt discount included in interest expense on the statements of operations for the three months ended June 30, 2025 and 2024.
Interest expense totaled $49,540 for the six months ended June 30, 2025, compared to $0 for six months ended June 30,
2024. The Company recognized $166,668 and $0, respectively, of amortization of debt discount included in interest expense
on the statements of operations for the six months ended June 30, 2025 and 2024. As of June 30, 2025, all of the July Note had
been converted (as outlined below) and there was $0 in outstanding principal on the July Note.

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