Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 46

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 to the Company by Ligand. The Ligand TSA governs the nature of the activities
of work, their scope, and the amounts be the charged to either party based on services performed.

UNC
License Agreement

The
UNC License Agreement currently requires the Company to pay UNC up to $250 in regulatory and commercial milestones on a licensed
product by licensed product basis and a running royalty percentage in the low single digits on net sales of licensed products.
Licensed products include any products being developed by the Company or by its sublicensees. In addition, the Company is obligated
to reimburse UNC for reasonable prosecution and maintenance costs related to intellectual property. The UNC License Agreement
remains in effect on a country by country and licensed product by licensed product basis until the expiration of the last to expire
issued patent covering such licensed product in the applicable country.

UNC
may terminate the agreement or render the license granted thereunder non-exclusive for material breach of the agreement that remains
uncured after 90 days of receipt of written notice thereof from UNC and may also terminate the agreement or render the license
granted thereunder non-exclusive upon providing written notice for bankruptcy or insolvency-related events within 30 days of the
occurrence of such events.

    29

The
Company is generally required by the various licensing agreements to reimburse the licensor for certain legal and other patent
related costs. These costs are expensed as incurred and are classified as general and administrative expenses in the condensed
statements of operations. The Company’s general and administrative expense recognized in connection with such costs totaled
$11 for the three months ended September 30, 2025.

July
1, 2025 Royalty Agreements

As
an inducement to enter into the Securities Purchase Agreement, Note 1 — “Organization
and Description of Business” for detail, on July 1, 2025 the Company entered into a Purchase and Sale Agreement with Nomis
RoyaltyVest LLC (“NRV”) (the “ZELSUVMI Royalty Agreement”), pursuant to which the Company sold to NRV
all of the Company’s rights, title and interest in and to a portion of the Company’s revenue payments for ZELSUVMI
and all accounts with respect thereto. The purchase price was $1.

Under
the terms of the ZELSUVMI Royalty Agreement, prior to the expiration of the initial royalty term NRV will receive (i) a 1.5% royalty
on net sales of ZELSUVMI