Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1358

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1358
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 We also have the right to terminate the Benuvia License Agreement
in the event we determine, in our reasonable business judgment, that (i) any of the Spray Formulations will not be differentiated
from oral tablets to result in a financially viable product or (ii) after having discussed a Spray Formulations with the FDA,
we determine in our reasonable business judgment, that the cost of development of such Spray Formulation would exceed any reasonable
forecast of a positive financial return. In the event we terminate the License Agreement, the parties will negotiate in good faith
a license agreement to any improvements we made to the Spray Formulations, including any clinical trial data, and Benuvia will
pay us a pre-determined royalty for such license. Mr. Davis, one of our directors, serves as the Chairman and Chief Executive
Officer of Benuvia Holdings, LLC, which is the ultimate parent company of Benuvia.

101 

On
February 8, 2024, we and certain affiliates of the Representative entered into the Bridge Financing Note Amendments. Under the
Bridge Financing Note Amendments, both notes issued in the April Bridge Financing and the September Bridge Financing had a maturity
date of March 1, 2024, and the full principal amount of both notes and any accrued interest thereon was payable solely in cash
upon the consummation of the IPO. Both notes had an annual interest rate of eight percent (8%), which accrued daily, and was calculated
on the basis of a 360-day year (consisting of twelve 30 calendar day periods).

On
February 10, 2024, we entered into the Stock Rescission Agreement with certain affiliates of the Representative, pursuant to which
we rescinded 111,129 shares of our Common Stock held by such affiliates of the Representative and agreed to refund an aggregate
of $91,512 paid by such affiliates of the Representative in consideration therefor within 30 days of the effective date of the
Stock Rescission Agreement.

Review,
Approval or Ratification of Transactions with Related Parties

We
have adopted a written related-person transactions policy that provides that our executive officers, directors, nominees for election
as a director, beneficial owners of more than 5% of our Common Stock and any members of the immediate family of the foregoing
persons, are not permitted to enter into a material related-person transaction with us without the review and approval of our
audit committee, or a committee composed solely of independent directors in the event it is inappropriate