Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 436

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 436
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. The Merger is expected to be accounted for as a business combination using the acquisition method of accounting under the provisions of ASC 805. Channel and LNHC are each expected to meet the definition of a business as defined by ASC 805 by virtue of having inputs, processes and outputs, and the Merger will be therefore accounted for a business combination. In addition, LNHC is expected to meet the definition of a VIE given the entity will not have sufficient equity to finance its activities without additional financial support, as assessed immediately prior to the Merger, with some or all of the support being invested at the time of the close of the Merger. Finally, Channel will own 100% of the shares of LNHC following the close of the Merger and will therefore be the primary beneficiary of the LNHC business. As a result, Channel will be deemed to be the accounting acquirer in the Merger, and the Merger will be accounted for as a business combination in which Channel acquires the LNHC business. The LNHC assets acquired, and liabilities assumed in connection with the Merger will be recorded at their acquisition date fair values. Under the acquisition method of accounting for purposes of these unaudited pro forma condensed combined financial statements, management has determined a preliminary estimated purchase price, calculated as described in Note 3. A final determination of these estimated fair values will be based on the actual net assets of LNHC that exist as of the date of completion of the Merger, and the accounting for the acquisition and determination of estimated fair values will be finalized within one year from the completion of the Merger. The unaudited pro forma condensed combined balance sheet as of December 31, 2024 combines the historical balance sheets of Channel and LNHC on a pro forma basis as if the Merger and PIPE Financing had been consummated on December 31, 2024. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 combines the historical statements of operations of Channel and LNHC for such periods on a pro forma basis as if the Merger and PIPE Financing had been consummated on January 1, 2024, the beginning of the earliest period presented. The unaudited pro forma condensed combined balance sheet as of December 31, 2024 has been prepared using, and should be read in conjunction with:

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 has been prepared using