Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 408

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 408
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 into a promissory note in the amount of $1,455,416.
The note matures on December 15, 2024 or, if earlier to occur, upon the closing of a public or private offering or other financing
or capital-raising transaction of any kind. As of December 31, 2024, the note was in default, though the Company has not received
any notice from the professional advisor. The note accrued interest at the rate of 4.86% per annum through December 15, 2024 and
6.86% thereafter. As of December 31, 2024, the note had an outstanding principal of $1,455,416 and accrued interest of $46,817.

Convertible
Note

On
July 24, 2024, the Company entered into a securities purchase agreement with an accredited investor (the “July Note Holder”),
pursuant to which the Company issued to the July Note Holder a senior unsecured convertible note (the “July Note”)
in the aggregate principal amount of $750,000, which is convertible into shares of Common Stock. The July Note accrues interest
at a rate of 6% per annum (which increases to 12% in the event of a default) and matures on August 24, 2025 (the “July
Note Maturity Date”). Interest is guaranteed through the July Note Maturity Date regardless of whether the July Note is
earlier converted or redeemed. The July Note is convertible by the holder thereof in whole or in part at any time after issuance
and prior to the July Note Maturity Date into shares of Common Stock based on a conversion price (the “July Note Conversion
Price”) of $1.506 per share (the “July Note Conversion Shares”), which cannot be reduced below $0.231 per share,
and is subject to customary adjustments for stock splits, stock dividends, recapitalization and other similar transactions. Notwithstanding
the foregoing, such conversions are subject to (i) a 4.99% beneficial ownership limitation contained in the Note, which may
be increased to 9.99% upon 61 days’ prior written notice to the Company by the July Note Holder, and (ii) the Exchange Cap
(as defined below). The Company has agreed to hold a meeting of its stockholders to seek approval of a waiver of the Exchange
Cap - no later than ninety (90) days from July 24, 2024. Under