Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 112

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 112
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2, as amended for 19,265 rentable square feet, located in Durham, North Carolina.
This lease dated as of January 18, 2021, as amended (the “TBC Lease”), is by and between the Company and Copper
II 2020, LLC (the “TBC Landlord”), pursuant to which the Company is leasing space serving as its corporate headquarters
and primary API manufacturing site (the “Premises”) located within the Triangle Business Center. The lease executed
on January 18, 2021, as amended, was further amended on November 23, 2021 to expand the Premises by approximately 3,642
additional rentable square feet from 15,623 rentable square feet.

The TBC Lease commenced on January 18,
2021 (the “Lease Commencement Date”). Rent under the TBC Lease commenced in October 2021 (the “Rent Commencement
Date”). The term of the TBC Lease expires on the last day of the one hundred twenty-third calendar month after the Rent Commencement
Date. The TBC Lease provides the Company with one option to extend the term of the TBC Lease for a period of 5 years, which would
commence upon the expiration of the original term of the TBC Lease, with base rent of a market rate determined according to the
TBC Lease; however, the renewal period was not included in the calculation of the lease obligation as the Company determined it
was not reasonably certain to exercise the renewal option.

The monthly base rent for the Premises
is approximately $39,000 for months 1-10 and approximately $49,000 for months 11-12, per the second amendment to the primary lease.
Beginning with month 13 and annually thereafter, the monthly base rent will be increased by 3%. Subject to certain terms, the TBC
Lease provided that base rent was abated for three months following the Rent Commencement Date. The Company is obligated to pay
its pro-rata portion of taxes and operating expenses for the building as well as maintenance and insurance for the Premises, all
as provided for in the TBC Lease.

Pursuant to the terms of the TBC Lease,
the Company delivered to the TBC Landlord a letter of credit in the amount of $583,000, as amended, as collateral for the full
performance by the Company of all of its obligations under the TBC Lease and for all losses