Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 13

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 after issuance and prior to the July Note Maturity Date
in cash at a price equal to 110% of the greater of (i) the July Note’s outstanding principal amount, plus all accrued but
unpaid interest and late charges due under the July Note (the “July Note Conversion Amount”) being redeemed as of
the date on which such redemption will occur (the “Company Optional Redemption Date”) and (ii) the product of (1)
the number of July Note Conversion Shares then issuable under the July Note multiplied by (2) the highest closing sale price of
the Common Stock on any trading day during the period commencing on the date immediately preceding the date of the Company Optional
Redemption Notice (as defined below) and ending on the trading day immediately prior to the date the Company makes the entire
payment. The Company may deliver only one notice to exercise its right to require redemption (the “Company Optional
Redemption Notice”) in any given 20 trading day period and each Company Optional Redemption Notice is irrevocable. At any
time prior to the date on which such optional redemption payment is paid in full, the July Note may be converted by the July Note
Holder into shares of Common Stock in accordance with the conversion terms thereof.

As
of March 31, 2025, there was ($307) $307 in
accrued interest and $88,740 unamortized debt discount on the July Note. Interest expense totalled $10,744 for the three months ended
March 31, 2025, compared to $0 for three months ended March 31, 2024. The Company recognized $65,561 and $0, respectively,
of amortization of debt discount included in interest expense on the statements of operations for the three months ended March 31,
2025 and 2024. As of March 31, 2025 there was $726,212 in outstanding principal on the July Note.

Waiver
of Exchange Cap

On
October 22, 2024, the affirmative vote of a majority of the outstanding shares of Common Stock present in person, by remote communication,
if applicable, or represented by proxy at the Annual Meeting approved the waiver of the Exchange Cap in connection with the July
Note and the CEF Purchase Agreement.

February
Bridge Note

On
February 25, 2025, the Company issued an unsecured promissory note in the aggregate principal amount of $325,000