Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1194

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 1194
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 needed, at all, or on terms acceptable to us. Lack of necessary funds may require us to, among other things, delay, scale
back or eliminate expenses including some or all of our planned development. There is substantial doubt about our ability to continue
as a going concern.

Cash
Flows

The
following table summarizes our cash flows for the years ended December 31, 2024 and 2023:

    Years Ended December 31, 2024 and 2023 

    2024  
    2023  
    $ Change  
    %
                                                                               Change 

    Net cash used in operating activities 
    $(5,792,483) 
    $(981,031) 
    $(4,811,452) 
     490%

    Net cash provided by financing activities 
     6,209,535  
     1,022,348  
     5,187,187  
     507%

    Net increase in cash 
    $417,052  
    $41,317  
    $375,735  
     909%

Net
Cash Used in Operating Activities

78 

For
the year ended December 31, 2024, we incurred a net loss of $7,955,338, and net cash flows used in operating activities was $5,792,483.
The cash flow used in operating activities was primarily due to a net loss of $7,955,338, offset by stock-based compensation expense
of $1,799,295, amortization of debt discount of $692,020, a change in account payable and accrued expense of $1,178,573, offset
by a change in prepaid expenses of $65,300, a change of $45,786 in due from Chromocell Corporation, and a change in accrued compensation
in the amount of $282,856, and deferred offering costs of $750,000.

For
the year ended December 31, 2023, we incurred a net loss of $7,380,793, and net cash flows used in operating activities was $981,031.
The cash flow used in operating activities was primarily due to a net loss of $7,380,793, offset by stock-based compensation expense
of $1,733,233, shares issued for license of $2,225,733, amortization of debt discount of $188,119, a change in account payable
and