Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1035

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1035
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 July Note Maturity Date
in cash at a price equal to 110% of the greater of (i) the July Note Note’s outstanding principal amount, plus all accrued
but unpaid interest and late charges due under the July Note (the “July Note Conversion Amount”) being redeemed as
of the date on which such redemption will occur (the “Company Optional Redemption Date”) and (ii) the product of (1)
the number of July Note Conversion Shares then issuable under the July Note multiplied by (2) the highest closing sale price of
the Common Stock on any trading day during the period commencing on the date immediately preceding the date of the Company Optional
Redemption Notice (as defined below) and ending on the trading day immediately prior to the date the Company makes the entire
payment. The Company may deliver only one notice to exercise its right to require redemption (the “Company Optional
Redemption Notice”) in any given 20 trading day period and each Company Optional Redemption Notice is irrevocable. At any
time prior to the date on which such optional redemption payment is paid in full, the July Note may be converted by the July Note
Holder into shares of Common Stock in accordance with the conversion terms thereof.

As
of December 31, 2024, there was $199 in
accrued interest and $127,426 in unamortized debt discount on the note. Interest expense totaled $19,418 for the year
ended December 31, 2024, compared to $0 for year ended December 31, 2023. The Company recognized $86,390 and $0, respectively,
of amortization of debt discount included in interest expense on the statements of operations for the years ended December 31,
2024 and 2023. As of December 31, 2024 there as $726,212 in outstanding principal on this note.

Waiver
of Exchange Cap

On
October 22, 2024, the affirmative vote of a majority of the outstanding shares of Common Stock present in person, by remote communication,
if applicable, or represented by proxy at the Annual Meeting approved the waiver of the Exchange Cap in connection with the July
Note and the CEF Purchase Agreement.

Outstanding
Principal on Notes

 Schedule
of Outstanding
Principal on Notes

    Loan Payable 
    Outstanding  Principal  
    Unamortized  Debt Discount  
    Outstanding  Principal, net of  Debt Discount