Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 107

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 107
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UNC
may terminate the agreement or render the license granted thereunder non-exclusive for material breach of the agreement that remains
uncured after 90 days of receipt of written notice thereof from UNC and may also terminate the agreement or render the license
granted thereunder non-exclusive upon providing written notice for bankruptcy or insolvency-related events within 30 days of the
occurrence of such events.

The
Company is generally required by the various licensing agreements to reimburse the licensor for certain legal and other patent
related costs.

62

July
1, 2025 Royalty Agreements

As
an inducement to enter into the Securities Purchase Agreement, Note 1 — “Organization
and Description of Business” for detail, on July 1, 2025 the Company entered into a Purchase and Sale Agreement with Nomis
RoyaltyVest LLC (“NRV”) (the “ZELSUVMI Royalty Agreement”), pursuant to which the Company sold to NRV
all of the Company’s rights, title and interest in and to a portion of the Company’s revenue payments for ZELSUVMI
and all accounts with respect thereto. The purchase price was $1,000.

Under
the terms of the ZELSUVMI Royalty Agreement, prior to the expiration of the initial royalty term NRV will receive (i) a 1.5% royalty
on net sales of ZELSUVMI worldwide, other than in Japan; and (ii) 3.46% of non-royalty sublicensing payments received by the Company
for its sublicensing of rights to ZELSUVMI, and after the expiration of the initial royalty term, NRV will receive (i) a 1.2%
royalty on net sales of ZELSUVMI worldwide, other than in Japan; and (ii) 3.46% of non-royalty sublicensing payments received
by LNHC for its sublicensing of rights to ZELSUVMI. The initial royalty term is defined as, on a country-by-country basis, the
period of time commencing on the effective date and continuing until the expiration or termination of the last to expire valid
claim of the patents that cover the ZELSUVMI.

On
July 1, 2025, the Company and NRV, Ligand, and Madison Royalty LLC, a Colorado limited liability company (“Madison”,
being formed on behalf of certain of the legacy Channel directors and management team with the Company’s Chief Financial