Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 38

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 the event of a termination, no portion of the upfront fees received from
Sato are refundable. The payment terms contained within the Sato Agreement related to upfront, developmental milestone and sales
milestone payments are of a short-term nature and, therefore, do not represent a financing component requiring additional consideration.

NOTE
6 – NOTES PAYABLE

May
Promissory Note

On
May 10, 2024,
the Company converted accounts payable with a professional advisor into a promissory note in the amount of $1,455. During the
three months ended September 30, 2025 the Company repaid $1,455 in principal
and accrued interest of $96. As of September 30, 2025, the May 10,
2024 note has been satisfied in full and no amounts remain outstanding.

July
Convertible Note

On
July 24, 2024, the Company entered into a securities purchase agreement with an accredited investor (the “July Note
Holder”), pursuant to which the Company issued to the July Note Holder a senior unsecured convertible note (the “July
Note”) in the aggregate principal amount of $750, which was convertible into shares of Common Stock. The July Note accrued
interest at a rate of 6% per annum and matured on August 24, 2025 (the “July Note Maturity Date”). Interest was guaranteed
through the July Note Maturity Date regardless of whether the July Note is earlier converted or redeemed.

On
April 16, 2025, the July Note Holder converted $400 of principal of its note, at a conversion price of $15.06 per share,
into 26,561 shares of the Company’s common stock, on April 21, 2025, the July Note Holder converted $200 of principal
of its note, at a conversion price of $15.06 per share, into 13,281 shares of the Company’s Common Stock, and on June 30,
2025, the July Note Holder further converted the remaining $137 of principal of its note, at a conversion price of $15.06 per
share, into 9,097 shares of the Company’s Common Stock. As of September 30, 2025, all of the July Note had been fully
converted and there was no outstanding principal on the July Note.

    25

Waiver
of Exchange Cap

On
October 22, 2024, the affirmative vote of a majority of