Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 11

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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, sell or offer to sell ZELSUVMI for the treatment of molluscum
contagiosum in humans worldwide, except for Japan.

On
March 24, 2025, LNHC and Ligand also entered into a master services agreement under which Ligand, or related parties, may contract
with LNHC to provide API for clinical or commercial use related to the NITRICIL technology. In addition, the agreement also allows
Ligand to require LNHC to provide manufacturing technology transfer services, if requested, for products other than ZELSUVMI,
to a potential third-party manufacturer.

    8

July
1, 2025 Merger

On July 1, 2025 (the “Merger
Closing Date”), the Company consummated the previously announced merger transaction contemplated by that certain Agreement
and Plan of Merger (the “Merger”) by and among the Company, CHRO Merger Sub, Inc. a Delaware Corporation and a wholly
owned subsidiary of the Company (“Merger Sub”), LNHC, and solely for the purposes of Article III of the merger agreement,
Ligand. Pursuant to the merger agreement, (i) Merger Sub merged with and into LNHC, with LNHC as the surviving company in the Merger
and, after giving effect to such Merger, continuing as a wholly-owned subsidiary of the Company and (ii) the Company’s name
was changed from Channel Therapeutics Corporation to Pelthos Therapeutics Inc.

The
Merger was accounted for as a business combination using the acquisition method of accounting under the provisions of Accounting
Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). The Company and LNHC each meet
the definition of a business as defined by ASC 805 by virtue of having inputs, processes and outputs. In addition, LNHC met the
definition of a VIE given the entity does not have sufficient equity to finance its activities without additional financial support,
as assessed immediately prior to the Merger. Finally, the Company owns 100% of the shares of LNHC following the close of the Merger
and is therefore the primary beneficiary of the LNHC business. As a result, the Company is deemed to be the accounting acquirer
in the Merger, and the Merger is accounted for as a business combination in which the Company acquired the LNHC business. The
LNHC assets acquired, and liabilities assumed in connection with the Merger are recorded at