Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1306

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1306
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 converted into approximately
87,109 shares of Common Stock, (D) $197,421 and accrued interest of $8,169 as of February 21, 2024 outstanding under our senior
secured convertible notes issued in a bridge financing in September 2023 for an aggregate
principal amount of $198,128 (the “September Bridge Financing” and together with the April Bridge Financing, the “Bridge
Financings”) after giving effect to the Representative Affiliate Transactions, automatically converted into
approximately 43,385 shares of Common Stock, which includes an additional 549 shares of Common Stock issuable as consideration
for the September Bridge Financing (the “Bonus Shares”), (E) we issued 37,500 shares of Common Stock to an investor
as consideration for its previous agreement to provide funding that is no longer necessary in connection with the IPO, (F) we
effected the Representative Affiliate Transactions, (G) we effected the transactions contemplated by the Holdings Side Letter,
and issued an aggregate of 2,600 shares of Series C Preferred Stock to Chromocell Holdings pursuant thereto, and (H) we issued
(i) 93,823 shares to a lender holding a note payable for $450,000 (the “Investor Note”) and (ii) 29,167 shares to
one of our directors holding the promissory note in the aggregate principal amount of $175,000 (the “Director Note”)
in full satisfaction of our obligations thereunder (in the case of (A) through (D) and (H) above, based on the IPO price of $6.00
per share of Common Stock). We refer to these actions as the “IPO Transactions.”

In
addition, certain stockholders of the Company (“Selling Stockholders”), as identified in the Registration Statement,
have agreed to offer for resale of up to an aggregate of 2,969,823 shares of Common Stock (the “Selling Stockholder Shares”)
to the public. After conversion of the convertible notes or shares of preferred stock, as applicable, the Selling Stockholders,
or their respective transferees, pledgees, donees or other successors-in-interest, may sell the Selling Stockholders Shares through
public or private transactions at prevailing market prices, at prices related to prevailing market prices or at privately negotiated
prices. We will not receive any proceeds from the sale of the Selling Stockholder Shares by the Selling Stockholders.

The
affirmative vote of a majority