Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 2180

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 11
Chunk 2180
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”) for $175,000. The Director Note had an original issuance discount of $75,000, no other interest
and matures on December 31, 2023, or, if earlier to occur, upon the closing of an underwritten offering of securities resulting
in at least $15 million in gross proceeds. Mr. Davis, as lender, has the right but not the obligation to subscribe to the
underwritten offering by presenting the Director Note in whole or in part to purchase such securities as legal tender therefor,
on a dollar-for-dollar basis based upon the offering price of such securities to the public. The Director Note bears no interest
except in the case of certain events of default.

On
December 28, 2023, the Company entered into an amendment to the Director Note, which extended the maturity date to February 29,
2024. The Director Note was exchanged for 29,167 shares of Common
Stock at the time of the Company’s IPO.

April
Bridge Financing

On
April 17, 2023, the Company entered into a bridge loan for working capital purposes, with various accredited investors, all
of whom are pre-existing stockholders, in the aggregate principal amount of $393,808 (the “April Bridge Financing”).
During the year ended December 31, 2023, the Company received $389,808, in Advances from certain participating investors. Such
Advances accrued interest at a rate of 8% per annum until close of the April Bridge Financing on April 17, 2023, for a total of
$1,870 in aggregate interest on all Advances. The April Bridge Financing consisted of senior secured convertible notes that
had a maturity date of October 17, 2023. Such notes accrued interest on the unpaid principal amount at a rate of 8% per annum
and automatically converted into shares of Common Stock at the IPO of shares of Common Stock at a 20% discount to the price per
IPO Share. The senior secured convertible notes issued in the April Bridge Financing were secured by a security interest in all
of the Company’s assets (including the Company’s patents and intellectual property licenses). In connection with the
April Bridge Financing, on April 17, 2023, the Company also entered into a securities purchase agreement with holders of the notes,
pursuant to which the Company is required to file a registration statement within 180 calendar days after consummation of the
IPO,