Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 107

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 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
8 – SUBSEQUENT EVENTS

The
Merger

On
July 1, 2025 (the “Closing Date”), Pelthos consummated the previously announced merger transaction contemplated by
that certain Merger Agreement, by and among the Company, Merger Sub, LNHC, and solely for the purposes of Article III thereof,
Ligand. Pursuant to the Merger Agreement, (i) Merger Sub merged with and into LNHC, with LNHC as the surviving company in the
Merger and, after giving effect to such Merger, continuing as a wholly-owned subsidiary of the Company and (ii) the Company’s
name was changed from Channel Therapeutics Corporation to Pelthos Therapeutics Inc. 

Following
the completion of the Merger, the business conducted by the Company became primarily the business conducted by LNHC, which is
a is a biopharmaceutical company committed to commercializing innovative, safe, and efficacious therapeutic products to help patients
with unmet treatment burdens.

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At
the effective time of the Merger (the “Effective Time”), the Company issued an aggregate of approximately 31,279 shares
of Series A Preferred Stock to Ligand, based on the exchange ratio set forth in the Merger Agreement, resulting in approximately
57,569 shares of the Company’s Series A Preferred Stock being issued and outstanding immediately following the Effective
Time. Immediately following the Merger, the Company’s securityholders as of immediately prior to the Merger owned approximately
7.9% of the outstanding shares of the Company and LNHC securityholders owned approximately 55.8% of the outstanding shares
of the Company, in each case on a fully diluted