Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 8

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 used.

Principles
of consolidation

The
consolidated financial statements include the accounts of Pelthos Therapeutics Inc. and its wholly owned subsidiaries, Chromocell
Therapeutics Australia Pty. Ltd and CHRO Merger Sub Inc. All significant intercompany balances and transactions have been eliminated.

Use
of Estimates

The
preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ
from those estimates. Significant estimates made by management include, but are not limited to, estimating the valuation of deferred
income taxes.

    8 

Cash
and Cash Equivalents

The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
As of June 30, 2025 and December 31, 2024, the Company did not have any cash equivalents.

As
of June 30, 2025, the Company did not have deposits in excess of federally insured limits.

Research
and Development

The
Company incurs research and development (“R&D”) costs during the process of researching and developing technologies
and future offerings. The Company expenses these costs as incurred unless such costs qualify for capitalization under applicable
guidance. The Company reviews acquired R&D and licenses to determine if they should be capitalized or expensed under U.S.
GAAP standards.

Below
is a disaggregation of R&D expenses:

    For
    the three
 months Ended

    For
the three
 months Ended 

    For
                                    the six 
months Ended

    For
    the six
 months Ended

    June
    30, 2025

    June
    30, 2024

    June
    30, 2025
     
    June
    30, 2024

    Consultant
     
    $
    107,408
     
    $
    107,357
     
    $
    195,663
     
    $
    137,390

    Lab Materials

    457

    1,452

    1,062

    1,452

    Lab Cell Storage

    15,795

     27,272

    31,223