Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 358

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 358
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,512. The following table summarizes Channel’s cash flows for the years ended December 31, 2024 and 2023:

|                                           |     | Years Ended December 31, 2024 and 2023 
                                   2024 |     |       2023 |     |     $ Change |     | % Change |
|:------------------------------------------|:----|---------------------------------------:|:----|-----------:|:----|-------------:|:----|:---------|
| Net cash used in operating activities     |     |                           $(5,792,483) |     | $(981,031) |     | $(4,811,452) |     | 490%     |
| Net cash provided by financing activities |     |                              6,209,535 |     |  1,022,348 |     |    5,187,187 |     | 507%     |
| Net increase in cash                      |     |                               $417,052 |     |    $41,317 |     |     $375,735 |     | 909%     |

Net Cash Used in Operating Activities For the year ended December 31, 2024, Channel 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, Channel 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