Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 91

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 91
---
iled. If we raise additional funds through the issuance of preferred stock, convertible debt securities or other debt
financing, these securities or other debt could contain covenants that restrict our operations. Any other third-party funding
arrangement could require us to relinquish valuable rights.

The
source, timing and availability of any future financing will depend principally upon market conditions. Funding may not be available
when needed, at all, or on terms acceptable to us. Lack of necessary funds may require us to, among other things, delay, scale
back or eliminate expenses including some or all of our planned development. There is substantial doubt about our ability to continue
as a going concern.

Cash
Flows

The
following table summarizes our cash flows for the three months ended March 31, 2025 and 2024:

    Three
    Months Ended March 31, 2025 and 2024

    2025

    2024

    $ Change

    %
    Change

    Net
    cash used in operating activities
     
    $
    (632,126
    )
     
    $
    (1,991,893
    )
     
    $
    (1,359,767
    )

    (68
    )%

    Net
    cash provided by financing activities

    250,000

    5,665,731

    5,415,731

    (96
    )%

    Net
    change in cash
     
    $
    (382,126
    ) 
     
    $
    3,673,838

    $
    4,055,964

    (110
    )%

Net
Cash Used in Operating Activities

For
the three months ended March 31, 2025, we incurred a net loss of $1,967,611, and net cash flows used in operating activities was
$632,126. The cash flow used in operating activities was primarily due to a net loss of $1,967,611, offset by stock-based compensation
expense of $485,631, amortization of debt discount of $94,213, a change in account payable and accrued expense of $706,478, and
by a change in prepaid expenses of $48,963.

For
the three months ended March 31, 2024, we incurred a net loss of $2,562,330, and net cash flows used in operating activities was