Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 565

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 565
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 |        |
|                                                   |     |               2025 |     |   2024 |
| Payroll and related expenses                      |     |               $863 |     |   $529 |
| Share-based compensation                          |     |              1,348 |     |    981 |
| Other non-employee related corporate expenses     |     |                213 |     |    166 |
| Total corporate expenses allocated to the Company |     |             $2,424 |     | $1,676 |

LNHC participates in Ligand’s centralized cash management and financing programs and will continue to participate in Ligand’s centralized cash management until it becomes an independent company. While most of vendors disbursements are made directly by LNHC, all Company’s obligations are financed by Ligand and financing decisions are determined by central Ligand treasury operations. Certain Company’s expenses are settled directly by Ligand, including personnel-related expenses. On March 24, 2025, LNHC entered into a Bridge loan agreement with Ligand based on which any amounts of cash transfers from Ligand to LNHC, or settlement of LNHC expenses directly by Ligand, starting from January 1, 2025, would be considered a loan in the amount up to $18,000. This loan will accumulate interest on a risk-free rate, and will be either payable back to Ligand, or reduce Ligand’s funding commitment with respect to an anticipated merger transaction. As mentioned in Note 1, on March 24, 2025, LNHC assigned its rights to its IP portfolio to Ligand, and entered into an exclusive license and sublicense agreement with Ligand, 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. An IP transfer transaction was accounted as a non-cash distribution from LNHC to the Parent, resulting in a reduction of Parent Company Net Investments (PCNI) balance by the amount of IP’s net book value as of the date of the transfer. The IP was licensed back to LNHC on the same date, and based on the license agreement, in the future LNHC will pay an aggregate amount of $10,000 upon the achievement of certain sales and commercial milestones, a low double-digit percentage royalty (reduced to lower double-digit percentage royalty after expiration date for the licensed patents covering ZELSUVMI), and a low-mid percentage