Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 94

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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MI, costs related to potential clinical trials associated
with the existing pain programs, and other activities will require the Company to raise
additional funds. However, there is no assurance that the Company will be able to raise such additional funds on acceptable
terms, if at all. If the Company raises additional funds by issuing securities, existing stockholders may be diluted.

Cash
Flows 

The
following table sets forth our cash flows for the periods indicated (in thousands):

    For
    the Nine months Ended September 30, 

    2025  
    2024 

    Net
    cash (used in) provided by: 

    Operating
    activities 
    $(16,338) 
    $(5,122)

    Investing
    activities 
     2,761  
     — 

    Financing
    activities 
     27,317  
     6,281 

    Net
    increase in cash, cash equivalents and restricted cash 
    $13,740  
    $1,159 

Net
Cash Used in Operating Activities

For
the nine months ended September 30, 2025, net cash used in operating activities was $16.3 million and consisted primarily of a
net loss of $21.7 million, with adjustments for non-cash amounts related primarily to (i) stock-based compensation expense of
$3.7 million, (ii) amortization of definite lived intangible assets acquired in the LNHC acquisition of $0.7 million, (iii) $0.4
million of depreciation expense, (iv) $1.3 million of accretion of interest expense for royalty obligations, (v) $0.8 million
related to inventory write-offs, (vi) $0.3 million amortization of debt discount, (vii) $0.1 million of lease amortization and
(viii) a $1.9 million change in cash related to changes in operating assets and liabilities.

The
favorable impacts to cash related to changes in assets and liabilities was primarily due to (i) a $1.4 million change in inventory,
(ii) a change in accounts payable and accrued expenses of $4.0 million and $2.7 million, respectively, (iii) a change in operating
lease assets of $0.2 million, and (iv) a change in other long-term assets and liabilities of $0.1 million. The unfavorable impacts
to