Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 561

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 561
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, and become partly due to Reedy Creek, the corresponding partial repayment to Reedy Creek will result in a ratable reduction of the total long-term obligation to repay the initial purchase price. As of the Novan Acquisition date, the Reedy Creek liability was measured at fair value in the amount of $13,700. This long-term liability is subsequently measured at amortized cost using the prospective effective interest method described in ASC 835-30, Imputation of Interest. The effective interest rate is calculated by forecasting the expected cash flows to be paid over the life of the liability relative to its fair value as of the Novan Acquisition date. The effective interest rate is recalculated in each reporting period as the difference between expected cash flows and actual cash flows are realized and as there are changes to expected future cash flows. The carrying value of the Reedy Creek liability is made up of the opening balance, which is increased by accrued interest expense, and decreased by any cash payments made to Reedy Creek during the period to arrive at the ending balance. Note 6: Balance Sheet Account Details Prepaid expenses and other current assets consisted of the following:

|                                                     |     | March 31, 
      2025 |     | December 31, 
         2024 |
|:----------------------------------------------------|:----|----------:|:----|-------------:|
| Prepaid Prescription Drug User Fee Act (PDUFA) fees |     |      $303 |     |         $404 |
| Study materials under Sato Agreement                |     |         — |     |          162 |
| Other                                               |     |       395 |     |          232 |
| Total prepaid expenses and other current assets     |     |      $698 |     |         $798 |

Inventory consisted of the following:

|                 |     | March 31, 
      2025 |     | December 31, 
         2024 |
|:----------------|:----|----------:|:----|-------------:|
| Raw materials   |     |      $583 |     |         $603 |
| Work-in-process |     |     3,909 |     |        3,923 |
| Finished goods  |     |       827 |     |            — |
| Total inventory |     |    $5,319 |     |       $4,526 |

Property and equipment consisted of the following:

|                                                 |     | March 31, 
      2025 |     | December 31,