Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 167

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 167
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We
currently do not have strategy and development plans for the Spray Formulations licensed from Benuvia. 

Background

Channel
was incorporated in Delaware on March 19, 2021. On November 18, 2024, Chromocell merged with and into its wholly-owned subsidiary,
Channel pursuant to the Reincorporation Merger Agreement, dated as of November 18, 2024 for the purposes of reincorporating Chromocell
in Nevada. All information disclosed in this Form 10-Q for periods prior to the Reincorporation Merger Effective Date relates
to the Predecessor, and all information disclosed in this Form 10-Q for periods after the Reincorporation Merger Effective Date
relates to Channel Therapeutics Corporation, a Nevada corporation.

On
August 10, 2022, we entered into the Contribution Agreement with Chromocell Holdings.
Pursuant to the Contribution Agreement, as of the Contribution Date, we acquired from Chromocell Holdings all assets, liabilities
and results of operations related to Chromocell Holdings’ therapeutic business, including all patents, pre-clinical and
Phase I study results and data, and trade secrets related to the CC8464 compound, in exchange for the issuance by us of 111,112
shares of our common stock, par value $0.0001 per share (“Common Stock”)
and (ii) 600,000 shares of Series A Convertible Preferred Stock (“Series
A Preferred Stock”).

On
August 2, 2023, we entered into a Side Letter to the Contribution Agreement with Chromocell Holdings (the “Holdings Side
Letter”). Pursuant to the Holdings Side Letter, upon closing of our initial public offering (“IPO”): (a) Chromocell
Holdings re-assumed all $1.6 million in direct liabilities previously assumed by the Company in accordance with the Contribution
Agreement, (b) Chromocell Holdings waived the Company’s obligations to make a cash payment in the amount of $0.6 million
to Chromocell Holdings, and (c) in consideration thereof, we issued to Chromocell Holdings 2,600 shares of  Series C Preferred
Stock.

On
February 21, 2024, we completed the IPO and issued and sold 110,000 shares of Common Stock at a price to the public of $60.00
per share. The aggregate net proceeds from the IPO