Company: PTPI
Filing Date: 2025-02-13
Form Type: S-1/A
Source: 0001410578-25-000122
Chunk: 282

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-02-13
Form: S-1/A
Chunk 282
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 ended September 30, 2024, the Company recognized a total of $ 1,265,662of preferred dividends consisting of $ 991,783of preferred dividends at the stated dividend rate, and $ 273,879of cash premium recognized as a deemed dividend.

17) Fair Value Measurements

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of and during the quarter ended September 30, 2024. The carrying amounts of cash equivalents, accounts receivable, other current assets, other assets, accounts payable, and accrued expenses approximated their fair values as of September 30, 2024, due to their short-term nature. The fair value of the bifurcated embedded derivative related to the convertible preferred stock was estimated using a Monte Carlo simulation model, which uses as inputs the fair value of the Company’s Common Stock and estimates for the equity volatility and traded volume volatility of the Company’s Common Stock, the time to maturity of the convertible preferred stock, the risk-free interest rate for a period that approximates the time to maturity, dividend rate, a penalty dividend rate, and the Company’s probability of default.

Fair Value on a Recurring Basis

The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The estimated fair value of the warrant liability and bifurcated embedded derivatives represent Level 3 measurements. The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

| ​                                        
 ​                                        
 Description                              
 Liabilities:                             | ​ 
 ​ |     ​ 
     ​ 
 Level | ​ 
 ​ | ​             
 September 30, 
 2024          
 ​             | ​ |
|:-----------------------------------------|:--|------:|:--|:--------------|:--|
| Bifurcated embedded derivative liability |   |     3 | ​ | $             | — |

F-52

The following table sets forth a summary of the change in the fair value of the bifurcated embedded derivative liability that is measured at fair value on a recurring basis:

| ​                                                      | ​ | ​ |          ​ |
|:-------------------------------------------------------|:--|:--