Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 361

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 361
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 December 15, 2024. Channel is currently evaluating the timing and impacts of adoption of this ASU.

In November 2024, the FASB issued ASU No. 2024-03, “Disaggregation of Income Statement Expenses,” which requires disclosures of certain disaggregated income statement expense captions into specified categories within the footnotes to the financial statements. The requirements of the ASU are effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early

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adoption permitted. The requirements will be applied prospectively with the option for retrospective application. Channel is currently evaluating the impact ASU No. 2024-03 will have on its condensed consolidated financial statements.

#### Segment Reporting
The clinical-stage biotech segment focused on developing and commercializing new therapeutics to alleviate pain. Channel’s clinical focus is to selectively target the sodium ion-channel known as “NaV1.7”, which has been genetically validated as a pain receptor in human physiology. A NaV1.7 blocker is a chemical entity that modulates the structure of the sodium-channel in a way to prevent the transmission of pain perception to the CNS. Channel’s goal is to develop a novel and proprietary class of NaV blockers that target the body’s peripheral nervous system. This segment is currently pre-revenue.

The accounting policies of the clinical-stage biotech segment are the same as those described in the summary of significant accounting policies.

The chief operating decision maker assesses performance for the clinical-stage biotech segment and decides how to allocate resources based on net loss that also is reported on the statement of operations as consolidated net loss.

The measure of segment assets is reported on the balance sheet as total assets.

The chief operating decision maker uses net loss to evaluate spending in deciding how funds should be allocated in preforming Channel’s research and development. Net loss is used to monitor budget versus actual results.

Channel has one reportable segment: clinical-stage biotech. This segment performs research and development for biotech products. Since Channel only has one segment, the segment information is the same as the consolidated financials.

Channel’s chief operating decision maker includes the chief executive officer, with such individual also holding the position of chief financial officer.

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### QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK OF CHANNEL
As