Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 450

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 450
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 the PIPE Financing for gross proceeds of $50.1 million reduced by the repayment of the Ligand Bridge Loan and PIPE Investor Bridge Loans through an offset of their respective funding commitments in the PIPE Financing (see Note 5(a) and Note 5(b)), and $0.6 million in estimated issuance costs. The completion of the PIPE Financing is contingent upon the closing of the Merger.

4(f) Reflects the elimination of LNHC’s historical net parent investment.

4(g) Represents the purchase accounting adjustment to increase LNHC’s liability associated with Reedy Creek to its estimated fair value.

4(h) Represents the purchase accounting adjustment to step-up inventory balances to their estimated fair value.

4(i) Represents the purchase accounting adjustment to increase the Right-of-use asset balance for lease agreements to their estimated fair value.

4(j) Represents an adjustment to deferred tax liability, record the estimated deferred tax impact of acquisition accounting adjustments primarily related to amounts allocated to intangible assets and inventory.

4(k) Represents the proceeds received from Channel’s May 2025 bridge note of $0.3 million and expected settlement of Channel’s loan payable, including bridge notes, of which approximately $0.6 million will be converted into common shares prior to closing and approximately $2.1 million is expected to be repaid at the closing of the Transactions.

4(l) Represents the expected impact of equity-based compensation granted in April 2025 in contemplation of the Merger and the expected impact of the accelerated vesting of certain equity-based compensation awards upon closing of the Merger.

The following pro forma adjustments are included in the unaudited pro forma condensed combined statements of operations for three months ended March 31, 2025 and year ended December 31, 2024 to reflect the effects of the Merger and PIPE Financing:

4(m) Reflects the estimated amortization expense related to the acquired intangible assets, which is calculated assuming a straight-line method of amortization based on the preliminary estimated fair values and useful lives presented Note 4(b) above. The amount of amortization will ultimately be based on the periods in which the associated economic benefits are expected to be derived and the pattern of benefit for each intangible asset, and therefore, the amount following the Merger may differ significantly between periods based upon the final values assigned and amortization methodology used for each intangible asset.

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A 10% increase or decrease in the estimated fair value of the intangible assets would cause