Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 89

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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 sold: 

    Products
    sold (including ASC 805 fair value adjustments) 
    $1,524  
    $—  
    $1,524  
    $1,524  
    $—  
    $1,524 

    Write-off
    of inventory 
     792  
     —  
     792  
     792  
     —  
     792 

    Total
    cost of goods sold 
    $2,316  
    $—  
    $2,316  
    $2,316  
    $—  
    $2,316 

As
part of the Merger, certain inventoried items were revalued subject to ASC 805 as of July 1, 2025. For more information, see Note
3 — “Acquisition of LNHC, Inc.” in the notes to our condensed consolidated financial statements.

52

Selling,
General and Administrative Expense 

Selling,
general and administrative (“SG&A”) expense consists of personnel and non-personnel expenses to support growing
sales of ZELSUVMI. Personnel-related expense includes salaries, incentive pay, benefits and share-based compensation for personnel
engaged in sales, marketing, regulatory, quality, medical, non-capitalizable manufacturing, finance, information technology and
administrative functions.

Non-personnel-related
expense includes: (i) selling, patient services, pharmacovigilance, marketing, advertising, travel, sponsorships and trade shows;
and (ii) other general and administrative costs, including consulting, legal, patent, insurance, accounting, information technology
and facilities.

The
Company uses a third-party logistics provider (“3PL”) to perform a full order-to-cash service, which includes warehousing
and shipping directly to its customers on its behalf. Activities performed by the 3PL as recorded in SG&A. SG&A expenses
are recognized as they are incurred.

Royalty
and/or milestone payments due to third parties under license arrangements or license agreements for commercial products, the associated
payment obligations are expensed within SG&A and recorded as a current liability in the periods in which the obligation is
incurred.

The
following table summarizes our SG&A expense for the three and nine months ended September 30, 2025 and 2024 (in thousands):

    For
    the Three months Ended September 30,  
    Change  
    For