Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 86

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 86
---
,298

    $
    466,606

    $
            (272,308
    )

    (58
    )%

The
Company incurred less research and development expenses for the three months ended March 31, 2025, as compared to the corresponding
period in 2024 primarily as a result of a decrease in CMC fees of $221,227.

Professional
Fees

We
incurred professional expenses for the three months ended March 31, 2025 and 2024 of $549,630 and $679,815, respectively. For
the three months ended March 31, 2025, compared to the same period in 2024, this represented a decrease of $130,185, or 19%, as
a result of increased legal and accounting fees in 2024 due to the Company’s IPO.

Other
Expense

We
incurred other expense for the three months ended March 31, 2025 of $133,634 as compared to other expense for the three months
ended March 31, 2024 of $628,348. For the three months ended March 31, 2025, compared to the same period in 2024, this represented
a decrease of $494,714 or 79%. The other expense for the three months ended March 31, 2025 and 2024 was primarily the result of
decreased interest expense. The decrease in the interest expense was due to the remaining amortization of the debt discount on
the Company’s notes being accelerated upon the conversion of the notes to equity upon consummation of the IPO during the
three months ended March 31, 2024.

32

Liquidity

Sources
of Liquidity and Capital

We
are in our early stages of development and growth, without established records of sales or earnings. We will be subject to numerous
risks inherent in the business and operations of financially unstable and early stage or emerging growth companies. We have not
yet commercialized any products, and we do not expect to generate revenue from product sales of any of our compounds for several
years.

Cash
totalled $0.1 million and $0.5 million as of March 31, 2025 and December 31, 2024, respectively. As of March 31, 2025 and December
31, 2024, we had an accumulated deficit of approximately $23.4 million and $21.