Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 103

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 103
---

term. Such factors include, but are not limited to, volumes of revenue generated by ZELSUVMI, delays or discontinuation of development
and commercialization of Channel Covered Products, regulatory approvals, changing standards of care, the introduction of competing
products, manufacturing or other delays, generic competition, intellectual property matters, adverse events that result in regulatory
authorities placing restrictions on the use of the drug products, and other events or circumstances that are not currently foreseen.
Changes to any of these factors could result in increases or decreases to both revenues and interest expense.

See
Note 8 — “License and Other Agreements” in the notes to our condensed
consolidated financial statements for additional detail.

Off
-Balance Sheet Arrangements

During
the nine months ended September 30, 2025 and 2024, the Company did not have, and it does not currently have, any off-balance sheet
arrangements, as defined under applicable SEC rules.

60

Contractual
Obligations and Commitments

We
have entered into arrangements that contractually obligate us to make payments that will affect our liquidity and cash flows in
future periods. Such arrangements include those related to our lease commitments, third-party license agreements, including licenses
and long-term manufacturing agreements.

As
described above, the Company's wholly owned subsidiary, LNHC, was formed in September 2023 to execute the Ligand acquisition of
certain assets and liabilities from Novan in a 363 transaction. Per the 363 transaction, certain Novan agreements were assumed
by LNHC and as of the Merger as of July 1, 2025, LNHC had certain rights and obligations related to various agreements.

Ligand
Pharmaceuticals Inc. 

On
March 24, 2025, LNHC (i) assigned its rights to its intellectual property portfolio to Ligand (the “Assignment Agreement”);
(ii) entered into an Exclusive License and Sublicense Agreement with Ligand (the “ZELSUVMI License”), pursuant to
which Ligand licensed to LNHC the intellectual property rights necessary to make, use, sell or offer to sell ZELSUVMI for the
treatment of molluscum contagiosum in humans worldwide, except for Japan; and (iii) entered into a Master Services Agreement For
Product Supply (the “Ligand MSA”). In addition, on July 1, 2025, LNHC and Ligand