Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 582

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 582
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 to the bankruptcy court's order. The approved $12,200 bid was credited to the $15,000 DIP financing, with the balance of $2,800 and accrued interest repaid to Ligand. The Novan Acquisition was accounted for as a business combination. The following table sets forth an allocation of the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed, with the excess recorded to goodwill (in thousands):

| Restricted cash                                         |     |    $583 |
| Property and equipment, net                             |     |  13,054 |
| Operating lease right-of-use asset                      |     |   4,104 |
| Other assets                                            |     |     137 |
| Intangible assets acquired                              |     |  10,700 |
| Goodwill                                                |     |   6,604 |
| Deferred revenue                                        |     |  -4,508 |
| Operating lease liabilities                             |     |  -4,104 |
| Deferred tax liability                                  |     |  -1,882 |
| Other liabilities                                       |     | -13,700 |
| Cash paid for Novan, including restricted cash received |     |  10,988 |
| DIP loan fees and interest                              |     |   1,162 |
| Total consideration                                     |     | $12,150 |

F-80

#### TABLE OF CONTENTS
Acquired intangible assets of $10,700 are related to NITRICIL technology (see Note 5). The fair value of NITRICIL technology was based on the discounted cash flow method that estimated the present value of the potential royalties, milestones, and collaboration revenue streams derived from the licensing of the related technologies. These projected cash flows were discounted to present value using a discount rate of 29%. The fair value of the core technology is being amortized on a straight-line basis over the estimated useful life of 15 years.

Assumed deferred revenue of $4,508 was related to the Amended Sato Agreement (see Note 4).

Assumed other liabilities of $13,700 were related to Reedy Creek Liability (see Note 6). This liability was fair valued based on the discounted cash flow method that estimated the present value of the potential royalties, milestones, and collaboration revenue streams derived from the related programs mentioned above, by applying a discount rate of 14% (revenue risk-adjusted discount rate).

#### Note 4: Sato Agreement
On January 12, 2017, the