Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 676

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 676
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    Total deferred tax liabilities 
     —  
     — 

    Net deferred taxes 
    $—  
    $— 

For
the years ended December 31, 2024 and 2023, the Company recorded a full valuation allowance of its deferred tax assets.

The
Company has a net operating loss carryforward for federal tax purposes totalling approximately $16.4 million at December
31, 2024. Approximately $16.4 million net operating losses incurred in fiscal 2018 through fiscal 2024 that do not expire
and can be utilized to offset up to 80% of future taxable income under the Tax Cuts and Jobs Act.

Utilization of NOL and tax
credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred
or that could occur in the future, as required by the Internal Revenue Code (the “Code”), as amended, as well as similar
state provisions. In general, an “ownership change” as defined by the Code results from a transaction or series of
transactions over a three-year period resulting in an ownership change of more than 50 percent of the outstanding stock of a company
by certain stockholders or public groups.

NOTE
9 – SEGMENT DISCLOSURE

The
clinical-stage biotech segment focused on developing and commercializing new therapeutics to alleviate pain. Our clinical focus
is to selectively target the sodium ion-channel known as “NaV1.7”, which has been genetically validated as a pain
receptor in human physiology. A NaV1.7 blocker is a chemical entity that modulates the structure of the sodium-channel in a way
to prevent the transmission of pain perception to the central nervous system (“CNS”). Our goal is to develop a novel
and proprietary class of NaV blockers that target the body’s peripheral nervous system. This segment is currently pre-revenue.

    F-27 

The
accounting policies of the clinical-stage biotech segment are the same as those described in the summary of significant accounting
policies.

The
chief operating decision maker assesses performance for the clinical-stage biotech segment and decides how to allocate resources
based on net loss that also is reported on the statement of operations as consolidated net loss.

The
measure of segment assets is reported on the balance sheet as total assets.

The
chief operating decision maker uses net loss to evaluate spending in deciding how funds should be allocated