Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 95

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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 cash related to changes in (i) accounts receivable of $7.9 million, (ii) prepaid expenses and other assets of $1.4 million,
(iii) operating lease liabilities of $0.2 million, (iv) a change in deferred revenue of $0.3 million, and (v) a change in deferred
tax liabilities of $0.5 million. The change in operating assets and liabilities and related changes from the prior period primary
relate to acquisition of LNHC, Inc. See Note 3—“Acquisition of LNHC, Inc.” to the accompanying condensed consolidated
financial statements for additional detail.

55

For
the nine months ended September 30, 2024, the Company incurred a net loss of $6.0 million and net cash flows used in operating
activities was $5.1 million. The cash flow used in operating activities was primarily due to net loss, offset by stock-based compensation
expense of $1.3 million, amortization of debt discount of $0.6 million, and a change in accounts payable of $0.6 million, offset
by a change in prepaid expenses of $0.9 million, a change in accrued expenses of $0.3 million, and a gain on default judgment
of $0.4 million.

Net
Cash Provided By Investing Activities

For
the nine months ended September 30, 2025, net cash flow provided by investing activities related to the LNHC acquisition of $2.8
million. See Note 3—“Acquisition of LNHC, Inc.” to the accompanying condensed consolidated financial statements
for additional detail.

The
Company neither received nor used cash in investing activities during the nine months ended September 30, 2024.

Net
Cash Provided by Financing Activities

For
the nine months ended September 30, 2025, net cash flows provided by financing activities were $27.3 million resulting from net
proceeds from the PIPE Financing of $27.3 million, proceeds from loans of $0.7 million, proceeds from stock option exercises of
$0.1 million, offset by payment on loans of $0.8 million.

For
the nine months ended September 30, 2024, net cash flows provided by financing activities were $6.3 million resulting from net
proceeds from common stock issued for cash of $6.0 million, proceeds from loans of $0.7 million, partially offset by payment of