Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 442

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 442
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ortization related to the identified intangible assets is reflected as a pro forma adjustment in the unaudited pro forma condensed combined statements of operations based on the estimated useful lives above, as further described in Note 4(m). The useful life assigned to the intangibles is derived based on the expected timeline of cumulative cash flows from the intangible asset.

4(c) Reflects total estimated merger-related transaction costs incurred or expected to be incurred by Channel of $2.4 million, all of which expected to be paid at or prior to the closing and is presented as an adjustment to cash and cash equivalents.

4(d) Reflects a net adjustment to recognize the preliminary estimated goodwill expected to arise from the merger, partially offset by the elimination of LNHC’s historical goodwill balance. See Note 3 for significant estimates and assumptions used to determine the preliminary estimate of goodwill for the purpose of preparing the pro forma condensed combined financial information. Goodwill arising from the Merger may change materially from the amount presented due to a number of factors. A sensitivity analysis of goodwill is presented in Note 3.

4(e) Represents the planned sale and issuance of 50,100 shares of Channel Series A Preferred Stock with a par value of $0.0001, at a per share price of $1,000, as a result of the PIPE Financing for gross proceeds of $50.1 million reduced by the repayment of the Ligand Bridge Loan and PIPE Investor Bridge Loans through an offset of their respective funding commitments in the PIPE Financing (see Note 5(a) and Note 5(b)), and $0.6 million in estimated issuance costs. The completion of the PIPE Financing is contingent upon the closing of the Merger.

4(f) Reflects the elimination of LNHC’s historical net parent investment.

4(g) Represents the purchase accounting adjustment to increase LNHC’s liability associated with Reedy Creek to its estimated fair value.

4(h) Represents the purchase accounting adjustment to step-up inventory balances to their estimated fair value.

4(i) Represents the purchase accounting adjustment to increase the Right-of-use asset balance for lease agreements to their estimated fair value.

4(j) Represents an adjustment to deferred tax liability, record the estimated deferred tax impact of acquisition accounting adjustments primarily related to amounts allocated to intangible assets and inventory.

4(k) Represents the expected settlement of Channel’s loan payable, of which approximately $0.6 million will be converted into common shares prior to closing and approximately $1.5 million is expected to be repaid at the closing of the Transactions