Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 17

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 but any such election to opt out is irrevocable. The
Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and
it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the
new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s
consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth
company which has opted out of using the extended transition period difficult or impossible because of the potential differences
in accounting standards used.

    11

Principles
of consolidation

The consolidated financial statements include
the accounts of Pelthos Therapeutics Inc. and its wholly owned subsidiaries, LNHC, Chromocell Therapeutics Australia Pty. Ltd,
and Channel Pharmaceutical Corporation (“CPC”). All significant intercompany balances and transactions have been eliminated.

See
Note 3 — “Acquisition of LNHC, Inc.” for further information regarding the LNHC acquisition. The post-acquisition
operating results of LNHC are reflected within the Company’s condensed consolidated statement of operations and comprehensive
loss for the three and nine months ended September 30, 2025.

Liquidity
and Ability to Continue as a Going Concern

A
fundamental principle of the preparation of financial statements in accordance with U.S. GAAP is the assumption that an entity
will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement
of liabilities occurring in the ordinary course of business. In accordance with this requirement, the Company has prepared its
accompanying condensed consolidated financial statements assuming the Company will continue as a going concern.

During
the three and nine months
ended September 30, 2025, the Company had a net loss of approximately $16,238
and $21,655, respectively. As of September 30, 2025, the Company had cash of
approximately $14,203 and working capital of $24,993.

The
Company expects to continue to incur losses for the foreseeable future, as it continues to invest in commercialization activities
for ZELSUVMI, add operational, financial and management information systems and personnel to support Company operations and incur
additional costs associated with operating as a public company. The Company’s ability to continue its operations is dependent
upon its ability to obtain additional capital in the future and