Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 448

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 448
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10% increase |     |      $1,067 |     |   $20,967 |
| 10% decrease |     |        $873 |     |   $14,903 |

A decrease in the fair value of LNHC’s assets or an increase in the fair value of LNHC’s liabilities from the preliminary valuations would result in a corresponding dollar-for-dollar increase in the estimated amount of goodwill as presented above. An increase in the fair value LNHC’s assets or a decrease in the fair value of LNHC’s liabilities from the preliminary valuations would result in a corresponding dollar-for-dollar decrease in the estimated amount of goodwill. Note 4 – Pro Forma Transaction Accounting Adjustments The following pro forma adjustments are included in the unaudited pro forma condensed combined balance sheet as of March 31, 2025 to reflect the effects of the Merger and PIPE Financing: 4(a) Reflects the total estimated merger consideration as outlined in Note 3, consisting of the estimated fair value of Channel Series A Preferred Stock issued of $30.3 million. See Note 3 for significant estimates and assumptions used to estimate the total merger consideration for the purpose of preparing the pro forma condensed combined financial information. 4(b) Reflects a net adjustment to recognize the estimated fair value of LNHC’s identifiable intangible assets. The estimated net fair value and the useful life of the intangible assets expected to be acquired is as follows (in thousands):

|                                                          |     |  Estimated 
 fair value |     |     Average 
   estimated 
 useful life |     |       Annual 
 amortization 
      expense |     |    Quarterly 
 amortization 
      expense |
| Developed technology                                     |     |    $22,900 |     |          13 |     |       $1,762 |     |         $440 |
| Sato licensing agreement                                 |     |        900 |     |           8 |     |          113 |     |           28 |
| Total estimated fair value of intangible assets acquired |     |     23,800 |     |             |     |        1,874 |     |          469 |

The preliminary fair value of developed technology was estimated using the “multi-period excess earnings” method, an income approach that considers the net cash flows expected to be generated by the intangible asset by excluding any cash flows related to contributory assets. Significant assumptions include the expected useful life of the patent, contributory asset charges and the concluded discount rate. The preliminary