Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 527

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 527
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Series C Preferred Stock has a liquidation preference of $1,000 per share. Holders of the Series C Preferred Stock are not entitled
to dividends, have no voting rights other than as required by law, and the shares of Series C Preferred Stock are convertible
into shares of Common Stock at a price of $7.50 per share of Common Stock. Following the IPO, at the Company’s option, the
shares of Series C Preferred Stock are convertible into shares of Common Stock automatically if, the trading price of the Common
Stock exceeds certain thresholds and are redeemable by the Company for cash.

Related
Party Note

On
May 10, 2024, the Company and Camden Capital LLC, a company controlled by Mr. Knuettel, the Company’s Chief Executive
Officer and Chief Financial Officer, entered converted certain payables into a promissory note for $131,868. The note matures
on December 15, 2024, or, if earlier to occur, upon the closing of a public or private offering or other financing or capital-raising
transaction of any kind. As of December 31, 2024, the note was in default, though the Company has not received any notice from
Mr. Knuettel. The note accrued interest at the rate of 4.86% per annum through December 15, 2024 and 6.86% thereafter. As
of December 31, 2024, the note had an outstanding principal of $131,868 and accrued interest of $4,242.

 Outstanding
Principal on Related Party Notes

 Schedule
of Outstanding
Principal on Related Party Notes

    Note Payable – Related Party 
    Outstanding  Principal  
    Unamortized  Debt Discount  
    Outstanding  Principal, net of  Debt Discount 

    Related Party Note 
    $131,868  
    $—  
    $131,868 

    Total as of December 31, 2024 
    $131,868  
    $—  
    $131,868 

    Note Payable – Related Party 
    Outstanding  Principal   
    Unamortized  Debt Discount  
    Outstanding  Principal, net of  Debt Discount 

    Director Note 
    $175,000  
    $—  
    $175,000 

    September and April Bridge financings 
     596,928