Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 393

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 393
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 Creek. During the Predecessor period this liability was recorded on the balance sheet at historical cost. As of Novan Acquisition date, this liability was recognized at fair value in Ligand’s purchase accounting adjustments of Novan. Subsequently, during the Successor periods, this liability was accounted for under the effective interest method with non-cash interest expense added to the amount of liability on a quarterly basis.

#### Income tax benefit
Income tax benefit during year ended December 31, 2024 (Successor), and for the periods from January 1, 2023 to September 27, 2023 (Predecessor) and September 28, 2023 to December 31, 2023 (Successor) amounted to $290 thousand, zero, and $1.5 million, respectively. The amount of income tax benefit in both Successor periods presented consists of federal deferred income tax benefit for both Successor periods.

We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. We assessed the positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. Our evaluation of evidence resulted in management concluding that the majority of the our deferred tax assets will not be realized.

### Liquidity and Capital Resources
Since Ligand’s acquisition of Novan, we have participated in Ligand’s centralized approach to cash management and financing of its operations. Accordingly, none of the Successor cash, cash equivalents, and short-term investments at the corporate level have been assigned to our company in the financial statements. Prior to separation, transfers of cash to and from Ligand have been reflected in parent company net investment in the historical balance sheets, statements of cash flows and statements of changes in parent company net investment.

Effective January 1, 2025, we entered into a bridge loan agreement with Ligand under which any amounts of cash transfers from Ligand to us, or settlement of our expenses directly by Ligand, starting from January 1, 2025, will be considered a loan from Ligand to us. The maximum borrowing under the bridge loan agreement is $18 million. The repayment of this loan at closing of the Merger will be offset against Ligand’s commitment in the PIPE Financing.

In addition, on April 16, 2025, LNHC entered into a Bridge loan agreement with two third-party lenders, part of the group of strategic investors led by Murchinson,