Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 169

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 169
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) and (H) above, based on the IPO price of $60.00 per share of Common
Stock). We refer to these actions as the “IPO Transactions.”

33 

In
addition, certain stockholders of the Company (“Selling Stockholders”), as identified in the Registration Statement,
have agreed to offer for resale of up to an aggregate of 296,983 shares of Common Stock (the “Selling Stockholder Shares”)
to the public. After conversion of the convertible notes or shares of preferred stock, as applicable, the Selling Stockholders,
or their respective transferees, pledgees, donees or other successors-in-interest, may sell the Selling Stockholders Shares through
public or private transactions at prevailing market prices, at prices related to prevailing market prices or at privately negotiated
prices. We will not receive any proceeds from the sale of the Selling Stockholder Shares by the Selling Stockholders.

The
affirmative vote of a majority of the outstanding shares of Common Stock present in person, by remote communication, if applicable,
or represented by proxy at the annual meeting of stockholders held on October 22, 2024 approved a reincorporation merger of the
Company in the State of Nevada with and into Channel Therapeutics Corporation, a wholly-owned subsidiary of the Company, with
Channel Therapeutics Corporation remaining as the surviving corporation immediately following the Reincorporation Merger. The
Reincorporation Merger occurred on November 18, 2024.

On
December 18, 2024, 747,187 shares of Common Stock and 2,600 shares of Series C Preferred Stock held by Chromocell Holdings were
transferred by the Company to AWI in satisfaction of a default judgement against Chromocell Holdings regarding the default by
Chromocell Holdings of a secured promissory note by order of the Supreme Court of the State of New York, County of New York on
November 25, 2024 in the matter Alexandra Wood (Canada) Inc v. Chromocell Corp., Index No. 651735/2024. AWI subsequently
transferred 17,300 shares of Chromocell Holding’s shares of Common Stock that it received such that AWI now owns 57,419
shares of the Common Stock originally issued to Chromocell Holdings in connection with the Contribution Agreement.

Trends
and Other Factors Affecting Our Business

On
December 23, 2023, we entered into an