Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 522

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 522
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 records of Ligand and Novan, respectively.

#### Parent Company Net Investment
Successor and Predecessor are under the control of Ligand and Novan, respectively (commonly referred to as “Parent” or “Parent Company”). Accordingly, the Parent Company net investment in Successor and Predecessor is shown in lieu of stockholder’s equity in the financial statements. All significant intercompany transactions with the Parent Company are deemed to have been paid in the period the costs were incurred. Expenses related to corporate allocations are considered to be effectively settled for cash in the financial statements at the time the transaction was recorded.

#### Corporate Allocations
The financial statements include all revenues, expenses, assets a liabilities directly associated with the Company's business activity, as well as an allocation of certain general and administrative expenses related to facilities, functions and services provided by the Parent.

<div align='center'>F-37</div>

#### TABLE OF CONTENTS
Corporate expenses have been allocated to the Successor based on a relative usage of (benefit from) certain corporate divisions, or specific corporate employees, in the Successor business. Management believes that methodology applied to Successor corporate expenses allocations are reasonable and consistent across the Successor reporting periods. Corporate expenses have been allocated to the Predecessor based on a relative salary percentage between non-corporate divisions of Novan. Management believes that methodology applied to Predecessor corporate expenses allocations is reasonable.

All of the allocations and estimates in the financial statements are based on assumptions that management believes are reasonable. However, the financial statements included herein may not be indicative of the financial position, results of operations and cash flows of the Company in the future or if the Company had been a separate, stand-alone publicly traded entity during the periods presented.

### Liquidity and Capital Resources
Since the Novan Acquisition, LNHC was dependent upon Ligand for all of its working capital and financing requirements, as Ligand uses a centralized approach for cash management and financing its operations. There were no cash amounts specifically attributable to LNHC for the historical periods presented; therefore, there is no cash reflected in the financial statements. Accordingly, cash and cash equivalents have not been allocated to LNHC in the financial statements. Financing transactions related to LNHC are accounted for as a component of net Parent investment in the balance sheets and as a financing activity including an interest expense component allocation on the accompanying statements of cash flows.

LNHC expects to continue to incur losses for the foreseeable future, as it continues to invest in commercialization activities for ZELSUVMI