Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 62

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 be shared pro rata
among all the Investors and (ii) the Company’s right to receive all royalty payments and milestone payments paid by Sato
to Ligand in respect of net sales of ZELSUVMI (less 50.0% of the milestone payment payable by Sato in respect of the first
commercial sale of ZELSUVMI in Japan, which will be kept by the Company), to be shared pro rata among all the Investors (the
“Sato Payments”).

Pledge Agreement

On the Convertible Note Financing Closing
Date, the Company, as pledgor and Ligand, as secured party, in its capacity as Collateral Agent for each holder of Convertible
Notes, entered into a pledge agreement (the “Pledge Agreement”). In accordance with the terms of the Pledge Agreement,
the Convertible Notes are secured by a lien on, and security interest in, (i) 10.0% of all aggregate net sales of the “End
Product” as defined in the Ferrer License Agreement (as defined below), including Xepi, in the United States, including Puerto
Rico and the U.S. Virgin Islands; provided, however, that the Company will only accrue 5.0% of such payments as liabilities until
the occurrence of an event of default (the “Covered Product Revenue Payments”), (ii) the Sato Payments, and (iii) all
accounts receivable of the Company with respect to the Covered Product Revenue Payments and the Sato Payments, pursuant to a pledge
agreement by and between – in each case, subject to certain permitted indebtedness of the Company.

Registration Rights Agreement

On the Convertible Note Financing Closing
Date, the Company and the Investors entered into a registration rights agreement (the “Convertible Notes Registration Rights
Agreement”), pursuant to which the Investors are entitled to certain resale registration rights with respect to shares of
the Company’s common stock issuable upon conversion of the Convertible Notes issued to the Investors. Pursuant to the Convertible
Notes Registration Rights Agreement, the Company is required to prepare and file a resale registration statement with the
SEC on or prior to the 60th calendar day following the Convertible Note Financing Closing Date. The Company is obligated to use
reasonable best efforts to cause this registration statement to be declared effective by the SEC by the earlier of (i) 90 calendar
days following the Convertible Note Financing Closing Date and (ii) the second business