Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 491

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 491
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 nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Principles of consolidation The consolidated financial statements include the accounts of Channel Therapeutics Corporation and its wholly owned subsidiary, Chromocell Therapeutics Australia Pty. Ltd. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimating the valuation of deferred income taxes. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of March 31, 2025 and December 31, 2024, the Company did not have any cash equivalents. As of March 31, 2025, the Company did not have deposits in excess of federally insured limits. Research and Development The Company incurs research and development (“R&D”) costs during the process of researching and developing technologies and future offerings. The Company expenses these costs as incurred unless such costs qualify for capitalization under applicable guidance. The Company reviews acquired R&D and licenses to determine if they should be capitalized or expensed under U.S. GAAP standards. Below is a disaggregation of R&D expenses:

|                                              |     |  For the Three 
   Months Ended 
 March 31, 2025 |     |  For the Three 
   Months Ended 
 March 31, 2024 |
|:---------------------------------------------|:----|---------------:|:----|---------------:|
| Consultant                                   |     |        $88,255 |     |        $30,033 |
| Lab Materials                                |     |            605 |     |              — |
| Lab Cell Storage                             |     |         15,428 |     |         24,127 |
| Chemistry Manufacturing and Controls (“CMC”) |     |         82,170 |     |        303,397 |
| IP Services                                  |     |          7,840 |     |        109,049 |
| Total                                        |     |       $194,298 |     |       $466,606 |

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