Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 173

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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 PIPE Financing occurred on July 1, 2025, immediately prior to the consummation of the Merger

On
July 1, 2025, certain PIPE Investors entered into Series A Convertible Preferred Stockholder Side Letters, with the Company, pursuant
to which, immediately after the closing of the PIPE Financing on July 1, 2025, the PIPE Investors converted 23,810 shares of Series
A Preferred Stock not exceeding such PIPE Investors’ Maximum Percentage into an aggregate of 2,381,000 shares of the Company’s
Common Stock (after giving effect to the Reverse Stock Split), by providing the Company with a completed and signed Conversion
Notice under the Certificate of Designation.

Going
Concern

For
the six months ended June 30, 2025 and 2024, we had a net loss of approximately $5.4 million and approximately $4.3 million, respectively,
and will require additional capital in order to operate in the normal course of business and to fund clinical studies. The IPO
closed on February 21, 2024, from which, the Company received net proceeds from the IPO of approximately $5.7 million after deducting
the underwriting discounts and commissions and offering expenses payable by the Company (excluding any exercise of the warrants
issued to A.G.P./Alliance Global Partners (the “Representative”)
or its designees, in connection with the IPO).

Based
on the Company’s current projections, management believes there is substantial doubt about its ability to continue to operate
as a going concern and fund its operations through at least the next twelve months following the issuance of these condensed consolidated
financial statements. While the Company completed
an equity offering of $50.1 million subsequent to the end of the reporting period, the
Company expects that costs associated with the commercial launch of Zelsuvmi (acquired pursuant to the Merger), the potential
acquisition of a second FDA approved product and costs related to potential clinical trials associated with the pain assets will
require the Company to raise additional funds. However, there is no assurance that the Company will be able to raise such additional
funds on acceptable terms, if at all. If the Company raises additional funds by issuing securities, existing stockholders may
be diluted.

Results
of Operations

Comparison
of the Three Months Ended June 30, 2025 and 2024

The
following table summarizes our results of operations for the three months ended June