Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 60

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 of Health.

On
February 8, 2024, we and certain affiliates of the Representative entered into amendments to the senior secured convertible notes
issued to such affiliates of the Representative in the April Bridge Financing and September Bridge Financing to remove the automatic
conversion features from such notes (the “Bridge Financing Note Amendments”). Under the Bridge Financing Note Amendments,
both notes issued in the April Bridge Financing and the September Bridge Financing had a maturity date of March 1, 2024, and the
full principal amount of both notes and any accrued interest thereon was payable solely in cash upon the consummation of the IPO.
Both notes had an annual interest rate of eight percent (8%), which accrued daily, and was calculated on the basis of a 360-day
year (consisting of twelve 30 calendar day periods).

On
February 10, 2024, we entered into a Stock Rescission Agreement with certain affiliates of the Representative (the “Stock
Rescission Agreement” and, together with the Bridge Financing Note Amendments, the “Representative Affiliate Transactions”),
pursuant to which we rescinded 11,113 shares of our Common Stock held by such affiliates of the Representative and agreed to refund
an aggregate of $91,513 paid by such affiliates of the Representative in consideration therefor within 30 days of the effective
date of the Stock Rescission Agreement. At September 30, 2024, all such amounts have
been paid pursuant to the Representative Affiliate Transactions and there are no remaining obligations thereto.

On
February 21, 2024, we completed the IPO and issued 110,000 shares of Common Stock at a price of $60.00 per share. The aggregate
net proceeds from the IPO were approximately $5.7 million after deducting approximately $0.9 million in underwriting discounts
and commissions and offering expenses.

In
connection with the completion of the IPO: (A) we effected the Reverse Stock Split, effective as of February 15, 2024 (B) all
600,000 issued and outstanding shares of our Series A Preferred Stock automatically converted into 49,943 shares of Common Stock,
(C) principal in the amount of $389,757, along with accrued interest of approximately $28,336 as of February 21, 2024, outstanding
under our senior secured convertible notes issued in the April Bridge Financing (after giving effect to the Representative Affiliate
Transactions), automatically converted into approximately 8,711 shares