Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 59

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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2024 primarily as a result of an increase in CMC.

Professional
Fees

We
incurred professional expenses for the six months ended June 30, 2025 and 2024 of $2,155,155 and $1,221,072, respectively. For
the six months ended June 30, 2025, compared to the same period in 2024, this represented an increase of $934,083, or 76%, as
a result of increased legal and accounting fees in 2024 due to the Company’s merger.

Other
Expense

We
incurred other expense for the six months ended June 30, 2025 of $352,150 as compared to other expense for the six months ended
June 30, 2024 of $635,881. For the six months ended June 30, 2025, compared to the same period in 2024, this represented a decrease
of $283,731 or 45%. The other expense for the six months ended June 30, 2025 and 2024 was primarily the result of decreased interest
expense. The decrease in the interest expense was due to the remaining amortization of the debt discount on the Company’s
notes being accelerated upon the conversion of the notes to equity upon consummation of the IPO during the six months ended June
30, 2024.

38 

Liquidity

Sources
of Liquidity and Capital

We
are in our early stages of development and growth, without established records of sales or earnings. We will be subject to numerous
risks inherent in the business and operations of financially unstable and early stage or emerging growth companies. We have not
yet commercialized any products, and we do not expect to generate revenue from product sales of any of our compounds for several
years.

Cash
totaled $0.1 million and $0.5 million as of June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025 and December
31, 2024, we had an accumulated deficit of approximately $26.9 million and $21.5 million, respectively, and had a working capital
deficit of approximately $6.5 million and $2.7 million, respectively.

Historically,
we have funded our operations from a series of cash advances from Chromocell Holdings, licensing arrangements, bridge and note
issuances and grants from the National Institutes