Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 61

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 disclosure required under this Item 1A.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent
Sales of Unregistered Securities  

On
January 23, 2025, the Company agreed to issue 25,000 shares of Common Stock to a vendor in consideration for the services provided
by the vendor to the Company.

The
offers and sales of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon
Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the
Securities Act, as transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating
to compensation as provided under Rule 701. The recipients of the above securities represented their intentions to acquire the
securities for investment only and not with a view to or for sale in connection with any distribution thereof.

Purchases
of Equity Securities by the Issuer and Affiliated Purchasers

Stock
Repurchase Plan:

On
August 5, 2024, the board of directors authorized a stock repurchase plan (the “Repurchase Plan”) pursuant to which
up to $250,000 of the Company’s Common Stock may be repurchased prior to December 31, 2024, unless completed sooner
or otherwise extended. We established the Repurchase Plan on the premise that the value of the Company’s programs and prospects
were not reflected in the trading price of the Company’s Common Stock on the NYSE American and in an effort to maintain
a minimum price relative to NYSE American’s listing standards. Further, the Company endeavored to balance the repurchase
of what the Company felt was undervalued stock and the Company’s available cash, as a result of which, the timing and actual
number of shares repurchased have depended and will continue to depend on a variety of factors including trading price of the
Company’s Common Stock on the NYSE American, the Company’s financial performance, corporate and regulatory requirements
and other market conditions.

38

Repurchase
Plan Amendment

On
October 22, 2024, the board of directors authorized an amendment (the “Plan Amendment”) to the Repurchase Plan to
increase the total value of shares of Common Stock available for repurchase by the Company under the Repurchase Plan by an additional
$500,000, to $750,000. In addition, the