Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 361

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 361
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 Transactions.
The September Bridge Financing consists of senior secured convertible notes that have a maturity date of March 1, 2024. Such notes
accrue interest on the unpaid principal amount at a rate of eight percent (8%) per annum and automatically converted into shares
of Common Stock in connection with the IPO at a twenty percent (20%) discount to the price per IPO Share plus 549 Bonus Shares
(43,385 shares, based on the IPO price of $6.00 per IPO Share). The senior secured convertible notes issued in the September Bridge
Financing are secured by a security interest in all of our assets (including our patents and intellectual property licenses).
In connection with the September Bridge Financing, on September 1, 2023, we also entered into a securities purchase agreement
with holders of the notes, pursuant to which we are required to file a registration statement within 180 calendar days after consummation
of the IPO, providing for the resale of Common Stock received by holders of the notes upon conversion of such notes. Additionally,
we entered into a subordination and intercreditor agreement, effective September 1, 2023, with the holders of the senior secured
convertible notes issued in the April Bridge Financing, pursuant to which those notes and certain liens of the Company will be
subordinated to the rights of the holders of the notes issued in the September Bridge Financing.

On
October 12, 2023, we and four existing investors entered into the October Promissory Notes with an aggregate face amount of $210,000
and an aggregate purchase price of $175,000. The October Promissory Notes mature on November 12, 2023 or, if earlier to occur,
upon the closing of the IPO. The October Promissory Notes bear no interest except in the case of certain events of default. On
November 7, 2023, we amended and restated the October Promissory Notes to extend the maturity dates of the October Promissory
Notes to November 17, 2023. On November 13, 2023, we amended and restated the October Promissory Notes to further extend the maturity
dates of the Promissory Notes to February 29, 2024. The October Promissory Notes were repaid on February 26, 27 and 28, 2024.

On
November 22, 2023, we commenced the Rights Offering pursuant to which we distributed Subscription Rights to each