Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1288

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 1288
---
stock was $37.71. The Company then adjusted this value in accordance with the following:

Schedule
of of Servicing Assets at Fair Value 

    Value
    of intellectual property
     
    $
    44.8 million

    Common shares outstanding
    (as converted)

    1,187,302

    Value per common
    share
     
    $
    37.71

    Illiquidity discount

    20
    %

    Minority discount

    20
    %

    Fair value of the
    common stock
     
    $
    22.68

After
the completion of the Company’s IPO, the trading price of the Company’s Common Stock is used as the fair value of
the Company’s Common Stock.

The
Company determined the expected volatility assumption for options granted using the historical volatility of comparable public
companies’ common stock. The Company will continue to monitor peer companies and other relevant factors used to measure
expected volatility for future option grants, until such time that the Company’s Common Stock has enough market history
to use historical volatility.

The
dividend yield assumption for options granted is based on the Company’s history and expectation of dividend payouts. The
Company has never declared nor paid any cash dividends on its Common Stock, and the Company does not anticipate paying any cash
dividends in the foreseeable future.

The
Company recognizes option forfeitures as they occur as there is insufficient historical data to accurately determine future forfeiture
rates.

The
following is an analysis of the stock option grant activity:

 Schedule
of  analysis of the stock option grant

    Weighted Average  
    Weighted Average 

    Number of Shares  
    Exercise Price  
    Remaining Life 

    Stock Options 

    Outstanding December 31, 2023 
     197,560  
    $22.68  
     9.08 

    Granted 
     684,000  
    $1.26  
     10.00 

    Expired 
     (11,111) 
    $(22.68) 
     — 

    Exercised 
     —  
    $—  
     — 

    Outstanding December 31, 2024 
     870,449  
    $5.85  
     9.19 

    Exercisable December 31, 2024 
     309,