Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 29

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 Accounting Pronouncements

In
December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information about
a reporting entity’s effective tax rate reconciliation, as well as information related to income taxes paid to enhance the
transparency and decision usefulness of income tax disclosures. This ASU will be effective for the annual periods beginning after
December 15, 2024. The Company is currently evaluating the impact ASU No. 2023-09 will have on its condensed consolidated financial
statements.

In
November 2024, the FASB issued ASU No. 2024-03, “Disaggregation of Income Statement Expenses,” which requires disclosures
of certain disaggregated income statement expense captions into specified categories within the footnotes to the financial statements.
The requirements of the ASU are effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning
after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective
application. The Company is currently evaluating the impact ASU No. 2024-03 will have on its condensed consolidated financial
statements.

Other
new accounting pronouncements issued, but not effective until after September 30, 2025, did not and are not expected to have
a material impact on the Company’s financial position, results of operations or liquidity.

19

NOTE
3 - ACQUISITION OF LNHC, INC.

The
Company issued 31,278 shares of Series A Preferred Stock as consideration pursuant to the terms of the Merger and merger agreement.
The total merger consideration was determined to have a fair value of $39,410, calculated as follows:

Schedule of Merger Consideration 

    Shares of Series A Preferred Stock issued in the Merger Agreement (1) 
     31,278 

    Series A Preferred Stock per share price (2) 
    $1,260 

    Total merger consideration 
    $39,410 

(1)Represents
                                         the number of shares of the Company’s Series A Preferred Stock issued to LNHC’s
                                         shareholders based on the exchange ratio as set forth in the Merger Agreement.

(2)As
                                         the Company’s Series A Preferred Stock was immediately convertible into the Company’s