Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 398

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 398
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 expense was primarily attributable to the fact that ZELSUVMI received an FDA approval in January 2024. From that point, the volume of research and development efforts significantly decreased. Also, beginning from the FDA approval date, the Company started to capitalize a portion of labor and overhead into the cost of inventory. The Company also paid a one-time success bonus to its research and development employees upon obtaining the FDA approval which was recorded in 2024 expenses. Selling, general and administrative expense was $15.5 million during the year ended December 31, 2024 (Successor), an increase of $4.8 million, or 45%, compared to a sum of $7.5 million and $3.2 million for the periods from January 1, 2023 to September 27, 2023 (Predecessor) and September 28, 2023 to December 31, 2023 (Successor), respectively. The increase in selling, general and administrative expense was primarily attributable to ZELSUVMI commercialization work, including marketing and education materials and conference costs. The Company also paid a one-time success bonus to its administrative employees upon obtaining the FDA approval which was recorded in 2024 expenses. Amortization of intangibles was $714 thousand during the year ended December 31, 2024 (Successor), an increase of $530 thousand, or 288%, compared to a sum of zero and $184 thousand for the periods from January 1, 2023 to September 27, 2023 (Predecessor) and September 28, 2023 to December 31, 2023 (Successor), respectively. The increase in amortization of intangibles is related to the application of purchase accounting adjustments to Novan upon which the Company recognized an intangible asset for NITRICIL technology in the amount of $10.7 million. This intangible asset is amortized on a straight-line basis over 15 years. Amortization of intangibles for two Successor periods presented are consistent on annualized basis.

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Other income (expense)

|                                   |     | Year Ended December 31, 
                    2024 |     |            2023 |     |              |
|:----------------------------------|:----|------------------------:|:----|----------------:|:----|-------------:|
|                                   |     |               Successor |     |       Successor |     |  Predecessor |