Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1041

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1041
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 Company to Alexandra Wood (Canada) Inc. (“AWI”) in satisfaction of a default judgement
against Chromocell Holdings regarding the default by Chromocell Holdings of a secured promissory note by order of the Supreme
Court of the State of New York, County of New York on November 25, 2024 in the matter Alexandra Wood (Canada) Inc v. Chromocell
Corp., Index No. 651735/2024. AWI subsequently transferred 173,000 shares of Chromocell Holding’s Common Stock that
it received such that AWI now owns 574,187 shares of the Common Stock originally issued to Chromocell Holdings in connection with
the Contribution Agreement.

Options

During
the year ended December 31, 2024, the Company granted a total of 684,000 stock options related to the Company’s
common stock. These stock options had a life of 10 years and an exercise price of $1.30 or $0.73 per option. During
the year ended December 31, 2023, the Company granted a total of 158,670 stock options. These stock options had a life
of 10 years and an exercise price of $22.68 per option.

During
the years ended December 31, 2024 and 2023, the fair value of each stock option granted was estimated using the Black-Scholes
Option Pricing Model using the following inputs:

 Schedule
of fair value of each stock option granted

    For
    the Year 
Ended 
December 31, 2024

    For
    the Year 
Ended 
December 31, 2023

    Exercise price
     
    $
    0.73-1.30

    $
    22.68

    Expected dividend yield

    0
    %

    0
    %

    Risk free interest rate

    4.20
    %

    3.50-3.93
    %

    Expected life in years

    10

    10

    Expected volatility

    196-201
    %

    157-158
    %

    F-22 

The
risk-free interest rate assumption for options granted is based upon observed interest rates on the United States Government Bond
Equivalent Yield appropriate for the expected term of the options.

With
certain adjustments outlined below, the Company based its determination of the underlying fair value of