Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 529

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 529
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 in Note 7 – Stockholders’ Equity.

On
August 17, 2023, the Company entered into a second side letter with the holder of the Investor Note (the “August Investor
Note Side Letter” and, together with the June Investor Note Side Letter, the “Investor Note Side Letters”) pursuant
to which the Company (i) amended and restated the Investor Note to extend the maturity date to September 30, 2023 and (ii) in
consideration therefor, issued to such holder 30,000 shares of Common Stock. On September 24, 2023, the Company entered
into an amendment to the Investor Note, which further extended the maturity date to October 10, 2023. The Investor Note provides
for the accrual of interest equal to 2% monthly ($9,000 per month) of the face amount of $450,000 and obligates the holder
to subscribe for securities in the IPO in full satisfaction of the Company’s repayment obligations. In addition, pursuant
to the Investor Note Side Letters, the Company agreed to register the 8,890 shares of Common Stock (5,556 issued for the June
23, 2023 side letter, and 3,334 issued for the August 17, 2023 side letter) for resale. The Company recorded an expense of $75,600
from the issuance of the 3,333 shares of Common Stock based on a share price of $22.68. The $22.68 share price was based on a
third-party valuation of the Company’s Common Stock, with certain adjustments as set forth below in detail in Note 7 –
Stockholders’ Equity.

Effective
October 10, 2023, the Company entered into a side letter with the Holder of the Investor Note, which extended the maturity date
of the Investor Note to November 14, 2023, and the Company issued to the Holder of the Investor Note 3,334 shares of
Common Stock.

Effective
November 13, 2023, the Company entered into another side letter with the holder of the Investor Note pursuant to which the Company
(i) amended and restated the Investor Note to extend the maturity date to January 31, 2024, and (ii) in consideration therefor,
agreed to issue to such Holder of the Investor Note 3,334 shares of Common Stock on each of November 29, 2023,