Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 593

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 593
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 CONTENTS

separate, stand-alone entity. In addition, the expenses reflected in the financial statements may not be indicative of related expenses that will be incurred in the future by the Company. The statements of operations include expenses for certain centralized functions (such as accounting, treasury, audit, purchasing, human resources, legal and facilities), executive compensation and other programs provided and/or administered by Parent that are charged directly to the Company. A portion of these costs benefits the Company and is allocated using a pro-rata method based on measures that management believes are consistent and reasonable. The amounts of corporate expenses allocated to the Company are summarized in a table below:

|                                                   |     |         2024 |     |            2023 |     |              |
|                                                   |     |    Successor |     |       Successor |     |  Predecessor |
|                                                   |     | January 1 to 
  December 31 |     | September 28 to 
     December 31 |     | January 1 to 
 September 27 |
| Payroll and related expenses                      |     |       $2,214 |     |            $402 |     |       $1,737 |
| Share-based compensation                          |     |        3,915 |     |           1,013 |     |        1,928 |
| Other non-employee related corporate expenses     |     |          888 |     |             183 |     |          784 |
| Total corporate expenses allocated to the Company |     |       $7,017 |     |          $1,598 |     |       $4,449 |

LNHC participates in Ligand's centralized cash management and financing programs and will continue to participate in Ligand's centralized cash management until it becomes an independent company. While most of vendors disbursements are made directly by LNHC, all Company's obligations are financed by Ligand and financing decisions are determined by central Ligand treasury operations. Certain Company's expenses are settled directly by Ligand, including personnel-related expenses. Note 11: Stock Based Compensation Successor Plan LNHC does not have its own equity-based incentive plans, and employees of LNHC do not participate in Parent’s equity-based incentive plans. However, a portion of certain Parent corporate employees' share-based compensation expenses was allocated to LNHC based on their involvement in LNHC operations. Under the Ligand 2002 Stock Incentive Plan (2002 Plan), Parent employees were awarded share-based incentive awards in a number of forms, including