Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 542

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 542
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 various awards, including incentive stock options, nonstatutory stock options, restricted stock units and other stock awards. Eligible plan participants include employees, directors, and consultants. The terms of the RSUs, including the vesting provisions, are determined by the board of directors. Each RSU represents the contingent right to receive one share of common stock of the Company. The RSUs granted typically cliff vest after a one-year period for grants to directors and a two-year period for grants to employees, provided that the grantee remains a director, employee or consultant of the Company as of such vesting date. Predecessor's share-based compensation expense is recognized based on the fair value on a straight-line basis over the requisite service periods of the awards, net of estimated forfeitures. General The Company measures share-based compensation for all share-based incentive awards at fair value on the grant date. The Black-Scholes option-pricing model is used to estimate the fair value of stock options granted. The model

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assumptions include expected volatility, term, dividends, and the risk-free interest rate. Management looks to historical and implied volatility of the underlying stock to determine the expected volatility. The expected term of an award is based on historical forfeiture experience, exercise activity, and on the terms and conditions of the stock awards. The expected dividend yield is determined to be 0% given that the Parent Company currently does not expect to pay cash dividends or make any other distributions on common stock in the future. The risk-free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards. The fair value of RSUs is determined by the closing market price of the underlying stock on the date of grant. Total Successor’s and Predecessor's stock-based compensation expense included in the statements of operations is as follows:

|                                     |     |         2024 |     |            2023 |     |              |
|                                     |     |    Successor |     |       Successor |     |  Predecessor |
|                                     |     | January 1 to 
  December 31 |     | September 28 to 
     December 31 |     | January 1 to 
 September 27 |
| Research and development            |     |         $183 |     |              $— |     |         $974 |
| Selling, general and administrative |     |        3,915 |     |           1,013 |     |