Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 397

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 397
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             $(649) |     | $(376) |

Interest expense was $626 thousand during the three months ended March 31, 2025, an increase of $256 thousand, or 69%, compared to $370 thousand for the three months ended March 31, 2024. Interest expense is attributable to a long-term liability to Reedy Creek. As of Novan Acquisition date, this liability was recognized at fair value in Ligand’s purchase accounting adjustments of Novan. Subsequently, this liability was accounted for under the effective interest method with non-cash interest expense added to the amount of liability on a quarterly basis. Interest expense increased primarily due to the increase in effective interest rate as a result of increased ZELSUVMI sales forecast, as well as the increased outstanding balance of the liability that interest rate is applied to as no payments have yet been made. Income tax benefit Income tax benefit during the three months ended March 31, 2025 and 2024 amounted to zero and $77 thousand, respectively. The amount of income tax benefit consists of federal deferred income tax benefit. We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. We assessed the positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. Our evaluation of evidence resulted in management concluding that the majority of our deferred tax assets will not be realized.

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TABLE OF CONTENTS

Comparisons of the year ended December 31, 2024 (Successor) to the periods from January 1, 2023 to September 27, 2023 (Predecessor) and September 28, 2023 to December 31, 2023 (Successor). Revenue

|                        |     | Year Ended December 31, 
                    2024 |     |            2023 |     |              |
|:-----------------------|:----|------------------------:|:----|----------------:|:----|-------------:|
|                        |     |               Successor |     |       Successor |     |  Predecessor |
| (Dollars in thousands) |     |            January 1 to 
             December 31 |     | September 28 to 
     December 31 |     | January 1 to 
 September 27 |
| Revenue                |     |                    $876 |     |            $209 |     |         $219 |

Revenue was