Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 654

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 654
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082 

    Total as of December 31, 2023 
    $771,928  
    $(21,846) 
    $750,082 

F-15 

NOTE
5 – NOTES PAYABLE

Investor
Note

On
February 4, 2022, the Company entered into a note payable for $450,000 (the “Investor Note”) with a third party.
This Investor Note had an original issuance discount of $150,000, representing an implicit interest rate of 50%, a maturity
date of February 3, 2023, and accrues no interest beyond the original issuance discount. During the year ended December 31,
2024, the Company issued 81,112 shares of common stock to extend the maturity date of the note, resulting in an additional debt
discount of $447,379. The Company recognized $581,055 and $309,094, respectively, of amortization of debt discount included
in interest expense on the statement of operations for the years ended December 31, 2024 and 2023 related to the Investor Note.
As of December 31, 2024, the debt discount associated with this Investor Note was fully amortized.

On
February 27, 2023, the Investor Note was amended. The maturity date was extended from its original due date of February 3,
2023 to May 15, 2023, in return for the Company agreeing to pay 2% per month in accrued interest and the third party agreeing
to settle its outstanding debt, including accrued interests in shares of Common Stock at the IPO.

On
June 23, 2023, the Company entered into a side letter with the holder of the Investor Note pursuant to which the Company (i) amended
and restated the Investor Note to extend the maturity date to August 15, 2023 and (ii) in consideration therefor, issued
to such holder 50,000 shares of Common Stock. The Company determined that this extension qualified as a modification of the Investor
Note rather than an extinguishment. The Company recorded an expense of $126,000 from the issuance of the 556 shares of Common
Stock based on a share price of $22.68. The $22.68 share price was based on a third-party valuation of the Company’s Common
Stock, with certain adjustments as set forth below in detail in Note 7 – Stockholders’ Equity.