Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1033

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1033
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 the senior secured convertible notes issued to such affiliates of the A.G.P. in the April Bridge Financing and September Bridge
Financing to remove the automatic conversion features from such notes (the “Bridge Financing Note Amendments”). Under
the Bridge Financing Note Amendments, both notes issued in the April Bridge Financing and the September Bridge Financing have
a maturity date of March 1, 2024, and the full principal amount of both notes and any accrued interest thereon shall be payable
solely in cash upon the consummation of the IPO. Both notes have an annual interest rate of 8%, which accrues daily, and is calculated
on the basis of a 360-day year (consisting of twelve 30 calendar day periods), giving an effective interest rate of 8.3%. During
the year ended December 31, 2024, the Company issued 81,112 shares of common stock to extend the maturity date of the note, resulting
in an additional debt discount of $447,379.

On
February 10, 2024, the Company entered into a Stock Rescission Agreement with certain affiliates of A.G.P. (the “Stock Rescission
Agreement” and, together with the Bridge Financing Note Amendments, the “Representative Affiliate Transactions”), pursuant
to which the Company rescinded 111,129 shares of Common Stock held by such affiliates of A.G.P. and agreed to refund an aggregate
of $91,512 paid by such affiliates of A.G.P. in consideration therefor within 30 days of the effective date of the Stock Rescission
Agreement. At December 31, 2024, all such amounts have been paid pursuant to the Representative Affiliate Transactions and there
are no remaining obligations thereto.

May
Promissory Note

On
May 10, 2024, the Company converted accounts payable with a professional advisor 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