Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 51

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 11-12, per the second
amendment to the primary lease. Beginning with month 13 and annually thereafter, the monthly base rent will be increased by 3%.
Subject to certain terms, the TBC Lease provided that base rent was abated for three months following the Rent Commencement Date.
The Company is obligated to pay its pro-rata portion of taxes and operating expenses for the building as well as maintenance and
insurance for the Premises, all as provided for in the TBC Lease.

Pursuant
to the terms of the TBC Lease, the Company is currently obligated to deliver to the TBC Landlord a letter of credit in the amount
of $583, as amended, as collateral for the full performance by the Company of all of its obligations under the TBC Lease and for
all losses and damages the TBC Landlord may suffer as a result of any default by the Company under the TBC Lease. As of September 30,
2025, the Company is in the process of securing this letter of credit.

The
Company’s rent cost was $174 for the three and nine months ended September 30, 2025. Cash paid for amounts included
in the measurement of operating lease liabilities was $161 for the three and nine months ended September 30, 2025.

The
weighted average remaining lease term for the TBC Lease and weighted average discount rate for the TBC Lease are 6.4 years and
8.4%, respectively, as of September 30, 2025.

Future
minimum lease payments as of September 30, 2025, were as follows:

    Maturity of Lease Liabilities  
    Operating Leases 

    2025  
    $164 

    2026  
     665 

    2027  
     685 

    2028  
     705 

    2029  
     726 

    2030 and beyond  
     1,583 

    Total future undiscounted lease payments  
     4,528 

    Less: imputed interest  
     (1,048)

    Total reported lease liability  
    $3,480 

NOTE
10 – STOCKHOLDERS’ EQUITY

See
Note 1 — “Organization and Description of Business” as it relates to the July 1, 2025 Merger and PIPE Financing.

Initial