Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 395

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 395
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 of intangibles is related to Ligand purchase accounting of Novan upon which the Company recognized an intangible asset for NITRICIL technology in the amount of $10.7 million. This intangible asset is amortized on a straight-line basis over 15 years. Interest expense Interest expense is attributable to expected royalty and milestone payments under the purchase agreement with Reedy Creek Investments LLC (the “Reedy Creek Purchase Agreement”) that was entered into on April 29, 2019, pursuant to which Reedy Creek provided funding to the Company in an amount of $25 million for the Company to pursue the development, regulatory approval and commercialization activities for SB206. During the Predecessor period this liability was recorded on the balance sheet at historical cost. As of Novan Acquisition date, this liability was recognized at fair value in Ligand purchase accounting of Novan. Subsequently, during the Successor periods, 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. For information about the Reedy Creek Purchase Agreement, see Note (6), Reedy Creek Liability in the notes to our audited financial statements and Note (5), Reedy Creek Liability in the notes to our unaudited condensed financial statements. Results of Operations Comparisons of the three months ended March 31, 2025 to the three months ended March 31, 2024. Revenue

|                        |     | Three months ended 
          March 31, |     |      |
| (Dollars in thousands) |     |               2025 |     | 2024 |
| Revenue                |     |               $294 |     | $218 |

Revenue was $294 thousand during the three months ended March 31, 2025, an increase of $76 thousand, or 35%, compared to $218 thousand for the three months ended March 31, 2024. Revenue in both periods is solely related to recognition of deferred revenue from Sato Agreement. Revenue increased primarily due to more delivery of study materials to Sato.

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Operating Expenses

|                                     |     | Three months ended 
          March 31, |     |        |
| (Dollars in thousands)              |     |               2025 |     |   2024 |
| Operating expenses:                 |     |                    |     |        |
| Research and development            |     |             $2,732 |     | $