Company: PTPI
Filing Date: 2025-02-10
Form Type: S-1/A
Source: 0001410578-25-000108
Chunk: 239

Company: Petros Pharmaceuticals, Inc.
Filing Date: 2025-02-10
Form: S-1/A
Chunk 239
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 exceeded the net proceeds received, the Company recognized the excess of the fair value over the net proceeds received as a loss

<div align='center'>F-29</div>

upon issuance of preferred stock of $ 11,088,997which is included in other income (expense) in the Consolidated Statement of Operations. During the year ended December 31, 2023, the Company recorded a gain of $ 2,590,000related to the change in fair value of the derivative liability which is recorded in other income (expense) on the Consolidated Statements of Operations. The Company estimated the $ 3,550,000fair value of the bifurcated embedded derivative at December 31, 2023 using a Monte Carlo simulation model, with the following inputs the fair value of our common stock of $ 1.41on the valuation date, estimated equity volatility of 115.0%, estimated traded volume volatility of 435.0%, the time to maturity of 0.92years, risk free rate of 4.9%, a discounted market interest rate of 14.0%, dividend rate of 8.0%, a penalty dividend rate of 15.0%, and probability of default of 10.1%. As of December 31, 2023, the Company has notified the investors of its intention to redeem the upcoming installments due in cash and recorded a liability of $ 2,047,582representing the cash payable to investors which includes $ 1,726,352of the stated value of the Series A Preferred Shares, $ 187,277of accrued dividends payable, and $ 133,955for the cash premium which was recognized as a deemed dividend. As of December 31, 2023, the Company has redeemed an aggregate 2,930Series A Preferred Shares for cash of $ 1,998,901and issued 822,112shares of Common Stock, elected pursuant to the terms of the Certificate of Designations, worth $ 1,195,745in relief of the accrued Series A Preferred Stock payments payable. As of December 31, 2023, the Company has recognized $ 821,456of preferred dividends which is comprised of $ 556,733of preferred dividends at the stated dividend rate and $ 264,723of deemed dividends for cash premium for installment redemptions. We are subject to certain affirmative and negative covenants regarding the incurrence of indebtedness, the existence of liens, the repayment of indebted