Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 323

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 323
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735  
     909%

Net
Cash Used in Operating Activities

78 

For
the year ended December 31, 2024, we incurred a net loss of $7,955,338, and net cash flows used in operating activities was $5,792,483.
The cash flow used in operating activities was primarily due to a net loss of $7,955,338, offset by stock-based compensation expense
of $1,799,295, amortization of debt discount of $692,020, a change in account payable and accrued expense of $1,178,573, offset
by a change in prepaid expenses of $65,300, a change of $45,786 in due from Chromocell Corporation, and a change in accrued compensation
in the amount of $282,856, and deferred offering costs of $750,000.

For
the year ended December 31, 2023, we incurred a net loss of $7,380,793, and net cash flows used in operating activities was $981,031.
The cash flow used in operating activities was primarily due to a net loss of $7,380,793, offset by stock-based compensation expense
of $1,733,233, shares issued for license of $2,225,733, amortization of debt discount of $188,119, a change in account payable
and accrued expense of $1,627,005, share issuance cost associated with the extension of the bridge loan in the amount of $201,600
and an increase in accrued compensation in the amount of $424,072.

Net
Cash (Used in) Provided by Investing Activities

The
Company neither received nor used cash in investing activities during the years ended December 31, 2024 and 2023.

Net
Cash Provided by Financing Activities

For
the year ended December 31, 2024, net cash flows provided by financing activities were $6,209,535 resulting from net proceeds
from common stock issued for cash of $5,972,000, net proceeds from common stock issued for cash under the equity line of credit
of $82,620, proceeds from loans of $536,184, partially offset by payment of recission on stock of $91,512, payment of repurchase
of common stock under Stock Repurchase Plan of $75,000 and payments on loans of $214,757.

For
the year ended December 31, 2023, net cash