Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 2255

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 12
Chunk 2255
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 upon conversion of such notes.

On
October 12, 2023, the Company entered into a first amendment to the senior secured convertible notes in the April Bridge Financing,
which extended the maturity of the notes to November 1, 2023. On October 24, 2023, the Company entered into a second amendment
to the senior secured convertible notes in the April Bridge Financing, which extended the maturity of the notes to November 14,
2023. On November 13, 2023, the Company entered into a third amendment to the senior secured convertible notes in the April Bridge
Financing, which further extended the maturity of the notes to February 29, 2024. These notes were exchanged for 87,727 shares
of Common Stock at
the time of the Company’s IPO.

September
Bridge Financing

On
September 1, 2023, the Company entered into a bridge loan for working capital purposes, with various accredited investors, certain
of which are pre-existing stockholders, in the aggregate principal amount of $198,128 (the “September Bridge Financing”).
The September Bridge Financing consisted of senior secured convertible notes that had a maturity date of March 1, 2024. Such notes
accrued interest on the unpaid principal amount at a rate of eight percent (8%) per annum and automatically converted into shares
of Common Stock in connection with the IPO at a twenty percent (20%) discount to the price per IPO Share plus an additional 62
shares of Common Stock issuable as further consideration for the September Bridge Financing. The senior secured convertible notes
issued in the September Bridge Financing were secured by a security interest in all of the Company’s assets (including patents
and intellectual property licenses). In connection with the September Bridge Financing, on September 1, 2023, the Company also
entered into a securities purchase agreement with holders of the notes, pursuant to which the Company is required to file a registration
statement within 180 calendar days after consummation of the IPO, providing for the resale of Common Stock received by holders
of the notes upon conversion of such notes. Additionally, the Company entered into a subordination and intercreditor agreement,
effective September 1, 2023, with the holders of the senior secured convertible notes issued in the April Bridge Financing, pursuant
to which those notes and certain liens of the Company would be subordinated to the rights of the holders of the notes issued in
the September Bridge Financing.