Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 359

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 359
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 the bridge loan in the amount of $201,600 and an increase in accrued compensation in the amount of $424,072. Net Cash (Used in) Provided by Investing Activities Channel neither received nor used cash in investing activities during the years ended December 31, 2024 and 2023. Net Cash Provided by Financing Activities For the year ended December 31, 2024, net cash flows provided by financing activities were $6,209,535 resulting from net proceeds from common stock issued for cash of $5,972,000, net proceeds from common stock issued for cash under the equity line of credit of $82,620, proceeds from loans of $536,184, partially offset by payment of recission on stock of $91,512, payment of repurchase of common stock under Stock Repurchase Plan of $75,000 and payments on loans of $214,757. For the year ended December 31, 2023, net cash flows provided by financing activities were $1,022,348 resulting from proceeds from loans of $766,936, with $565,928 of that amount derived from related parties and $255,412 from common stock issued for cash. Off-Balance Sheet Arrangements During the three months ended March 31, 2025 and 2024, Channel did not have, and Channel does not currently have, any off-balance sheet arrangements, as defined under applicable SEC rules.

201

#### TABLE OF CONTENTS
During the years ended December 31, 2024 and 2023, Channel did not have, and Channel does not currently have, any off-balance sheet arrangements, as defined under applicable SEC rules.

#### Critical Accounting Estimates
The following discussions are based upon Channel’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.

The preparation of these consolidated financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingencies. Channel continually evaluates the accounting policies and estimates used to prepare the consolidated financial statements. Channel bases Channel’s estimates on historical experiences and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management.

See Note 3 - Summary of Significant Accounting Policies to the accompanying consolidated financial statements for a detailed description of Channel’s significant accounting policies.

#### Income Taxes
Channel is subject to income taxes in the U.S. Significant judgment is required in determining income tax