Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 443

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 443
---
.

4(l) Represents the expected impact of equity-based compensation granted in April 2025 in contemplation of the Merger and the expected impact of the accelerated vesting of certain equity-based compensation awards upon closing of the Merger.

The following pro forma adjustments are included in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 to reflect the effects of the Merger and PIPE Financing:

4(m) Reflects the estimated amortization expense related to the acquired intangible assets, which is calculated assuming a straight-line method of amortization based on the preliminary estimated fair values and useful lives presented Note 4(b) above. The amount of amortization will ultimately be based on the periods in which the associated economic benefits are expected to be derived and the pattern of benefit for each intangible asset, and therefore, the amount following the Merger may differ significantly between periods based upon the final values assigned and amortization methodology used for each intangible asset.

A 10% increase or decrease in the estimated fair value of the intangible assets would cause an increase or decrease of $0.2 million to the annual amortization amount as presented in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024, assuming a weighted average estimated useful life of 12.9 years.

4(n) Reflects a non-recurring adjustment to record the total estimated merger-related transaction costs of approximately $2.4 million expected to be incurred by Channel. Direct transaction costs are expensed as incurred and these additional transaction costs are reflected as if incurred on January 1, 2024, the date the Merger is assumed to have been completed for the purposes of the unaudited pro forma condensed combined statement of operations.

<div align='center'>252</div>

TABLE OF CONTENTS

4(o) Reflects the removal of interest expense associated with the Ligand Bridge Loan and PIPE Investor Bridge Loans executed in March and April 2025, respectively, which are expected to be repaid as part of the PIPE Financing as discussed in Note 4(e). 4(p) Reflects the removal of interest expense associated with Channel’s loan payable expected to be converted into common shares or repaid at or prior to closing of the Transactions as discussed in Note 4(k). 4(q) No income tax adjustment is reflected for the year ended December 31, 2024 based on combined estimated annual effective tax rate and having a full valuation allowance on the combined