Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 907

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 907
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4. The Director Note was exchanged for 29,167 shares of Common
Stock at the time of the Company’s IPO.

April
Bridge Financing

On
April 17, 2023, the Company entered into a bridge loan for working capital purposes, with various accredited investors, all
of whom are pre-existing stockholders, in the aggregate principal amount of $393,808 (the “April Bridge Financing”).
During the year ended December 31, 2023, the Company received $389,808, in Advances from certain participating investors. Such
Advances accrued interest at a rate of 8% per annum until close of the April Bridge Financing on April 17, 2023, for a total of
$1,870 in aggregate interest on all Advances. The April Bridge Financing consisted of senior secured convertible notes that
had a maturity date of October 17, 2023. Such notes accrued interest on the unpaid principal amount at a rate of 8% per annum
and automatically converted into shares of Common Stock at the IPO of shares of Common Stock at a 20% discount to the price per
IPO Share. The senior secured convertible notes issued in the April Bridge Financing were secured by a security interest in all
of the Company’s assets (including the Company’s patents and intellectual property licenses). In connection with the
April Bridge Financing, on April 17, 2023, the Company also entered into a securities purchase agreement with holders of the notes,
pursuant to which the Company is required to file a registration statement within 180 calendar days after consummation of the
IPO, providing for the resale of Common Stock received by holders of the notes upon conversion of such notes.

On
October 12, 2023, the Company entered into a first amendment to the senior secured convertible notes in the April Bridge Financing,
which extended the maturity of the notes to November 1, 2023. On October 24, 2023, the Company entered into a second amendment
to the senior secured convertible notes in the April Bridge Financing, which extended the maturity of the notes to November 14,
2023. On November 13, 2023, the Company entered into a third amendment to the senior secured convertible notes in the April Bridge
Financing, which further extended the maturity of the notes to February 29, 2024. These notes were exchanged for 87,727 shares
of Common Stock at
the