Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 573

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 573
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”), providing for a committed equity financing facility, pursuant
to which, upon the terms and subject to the satisfaction of the conditions contained in the CEF Purchase Agreement, Tikkun has
committed to purchase, at the Company’s direction in its sole discretion, up to an aggregate of $30,000,000 (the “Total
Commitment”) of the shares of Common Stock (the “Purchase Shares”), subject to certain limitations set forth
in the CEF Purchase Agreement, from time to time during the term of the CEF Purchase Agreement. Concurrently with the execution
of the CEF Purchase Agreement, the Company and Tikkun also entered into a Registration Rights Agreement, dated as of July 26,
2024, pursuant to which the Company agreed to file with the SEC one or more registration statements, to register under the Securities
Act, the offer and resale by Tikkun of all of the Purchase Shares that may be issued and sold by the Company to Tikkun from time
to time under the CEF Purchase Agreement.

77 

On
August 5, 2024, our board of directors authorized the Repurchase Plan, pursuant to which up to $250,000 of our Common Stock may
be repurchased prior to December 31, 2024, unless completed sooner or otherwise extended. Open market purchases are intended to
be conducted in accordance with applicable Securities and Exchange Commission regulations, including the guidelines and conditions
of Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and actual number of shares repurchased
will depend on a variety of factors including trading price, the Company’s financial performance, corporate and regulatory
requirements and other market conditions. On
October 22, 2024, the board of directors authorized an amendment (the “Amendment”) to the Repurchase Plan to increase
the total value of shares of Common Stock available for repurchase by the Company under the Repurchase Plan by an additional $500,000,
to $750,000.

Future
Funding Requirements

Our
primary use of cash is to fund clinical development, operating expenses and repay accrued liabilities associated with our IPO
and prior operating expenses.

With
respect to the Company’s future expected operations expenses, the primary expense drivers will be research and development
and management overhead, including costs of being a public company. Of these, research and development is a significant expense
which has been utilized for the further