Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 29

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 the six months ended June 30, 2025 and 2024, respectively, which is included in general
and administrative expenses in the condensed consolidated statements of operations.

NOTE
7 – 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 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.

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 in preforming the
Company’s research and development. Net loss is used to monitor budget versus actual results.

The
Company has one reportable segment: clinical-stage biotech. This segment performs research and development for biotech products.
Since the Company only has one segment, the segment information is the same as the consolidated financials.

The
Company’s chief operating decision maker is the chief executive officer, with such individual also holding the position
of chief financial officer.

NOTE
8 – SUBSEQUENT EVENTS

The
Merger

On
July 1, 2025 (the “Closing Date”), Pelthos consummated the previously announced merger transaction contemplated by
that certain Merger Agreement, by and among the Company, Merger Sub, LNHC, and solely for the purposes of Article III thereof,
Ligand. Pursuant to the Merger Agreement, (i) Merger Sub merged with and into LNHC, with LNHC as the surviving company in the
Merger and, after giving effect to such Merger, continuing as a wholly-owned subsidiary of the Company and (ii) the Company’s
name was changed from Channel Therapeutics