# EDGAR Filing Document

**Accession Number:** 0001919246
**File Stem:** 0001753926-26-000010
**Filing Date:** 2026-1
**Character Count:** 69403
**Document Hash:** 4210bd5cb6b1ac4804ea628dd8b5019a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001753926-26-000010.hdr.sgml**: 20260102

**ACCESSION NUMBER**: 0001753926-26-000010

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20251223

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260102

**DATE AS OF CHANGE**: 20260102

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pelthos Therapeutics Inc.
- **CENTRAL INDEX KEY:** 0001919246
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 863335449
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41964
- **FILM NUMBER:** 26502956

**BUSINESS ADDRESS:**
- **STREET 1:** 4020 STIRRUP CREEK DRIVE
- **STREET 2:** SUITE 110
- **CITY:** DURHAM
- **STATE:** NC
- **ZIP:** 27703
- **BUSINESS PHONE:** 919-908-2422

**MAIL ADDRESS:**
- **STREET 1:** 4020 STIRRUP CREEK DRIVE
- **STREET 2:** SUITE 110
- **CITY:** DURHAM
- **STATE:** NC
- **ZIP:** 27703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Channel Therapeutics Corp
- **DATE OF NAME CHANGE:** 20241118

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Chromocell Therapeutics Corp
- **DATE OF NAME CHANGE:** 20220323

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **December 23, 2025**

**Pelthos Therapeutics Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-41964** | **86-3335449** |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **4020 Stirrup Creek Drive, Suite 110**<br> **Durham, NC** | **27703** |
| (Address of registrant's principal executive office) | (Zip code) |

---

Registrant's telephone number, including area code: **(919) 908-2400**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.0001 per share | PTHS | The NYSE American LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01. Entry into a Material Definitive Agreement.**

On December 23, 2025, Pelthos Therapeutics Inc., a Nevada corporation (the "**Company**") entered into an Asset Purchase Agreement (the "**Asset Purchase Agreement**") with Hatchtech Pty Ltd ACN 098 559 409, an Australian corporation ("**Hatchtech**"), pursuant to which Hatchtech sold all of its right, title and interest in (i) the product developed by Hatchtech with Abametapir as its sole active ingredient for the treatment of head lice infestation in humans (the "**Xeglyze Product**"), (ii) all intangible assets of Hatchtech including intellectual property of Hatchtech relating to the Xeglyze Product, including, without limitation (A) certain patent and patent applications, together with all issuances, divisions, continuations, continuations-in-part, reissues, extensions, reexaminations, and renewals and (B) certain trademarks, service marks, trade names and registered user names, including registrations and applications for registration thereof, together with all goodwill associated therewith; (iii) certain copyright registrations and applications; (iv) all Product Know-How (as defined in the Asset Purchase Agreement); (v) all books, records, manuals, Regulatory Materials (as defined in the Asset Purchase Agreement), and other materials; (vi) all governmental licenses, permits, approvals, license applications, license amendment applications and products registrations concerning the Xeglyze Product; and (vii) all inventory, finished goods, work-in-process, raw materials, components, packaging, supplies, equipment, machinery, tooling, computers, hardware, furniture, fixtures, and other tangible personal property and tangible materials owned by Seller and used or held for use exclusively or primarily in connection with the Xeglyze Product (collectively, the "**Acquired Assets**").

In connection with the transactions contemplated by the Asset Purchase Agreement, the Company previously entered into a Down Payment Agreement with Hatchtech on November 20, 2025 (the "**Down Payment Agreement**"), pursuant to which the Company paid a $450,000 deposit to Hatchtech (the "**Down Payment**").

The aggregate purchase price payable by the Company to Hatchtech for the Acquired Assets is $1,800,000 (the "**Purchase Price**") and consists of (i) the Down Payment of $450,000 paid by the Company to Hatchtech on November 20, 2025 and (ii) a cash payment of $1,350,000 paid by the Company to Hatchtech on December 23, 2025.

Pursuant to the terms of the Asset Purchase Agreement, the Company has the right to claw back up to a maximum amount of 100% of the Purchase Price for certain defaults of Hatchtech under the Asset Purchase Agreement. Additionally, the Company has the right to claw back 100% of the Purchase Price in the event the closing of the transactions contemplated by the Asset Purchase Agreement did not occur on or prior to December 29, 2025 (the "**Closing Date**").

The transactions contemplated by the Asset Purchase Agreement were consummated on the Closing Date.

The foregoing descriptions of the Down Payment Agreement and Asset Purchase Agreement are not complete and are subject to and qualified in their entirety by reference to the Asset Purchase Agreement and the Down Payment Agreement, copies of which are filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein, with confidential portions redacted, as applicable.

**Item 8.01. Other Events.**

On January 5, 2026, the Company will issue a press release announcing the closing of the transactions contemplated by the Asset Purchase Agreement. The press release contains statements intended as "forward-looking statements" which are subject to the cautionary statements about forward-looking statements set forth therein. The press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference, except that the information contained on the websites referenced in the press release is not incorporated herein by reference.

**Item 9.01. Financial Statements and Exhibits.**

**(d)** **Exhibits:** 

---

| | |
|:---|:---|
| **Exhibit No.** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Description** |
| [10.1\*](g085066_ex10-1.htm) | [Asset Purchase Agreement, dated as of December 23, 2025, by and between Pelthos Therapeutics Inc., as Purchaser, and Hatchtech Pty Ltd ACN 098 559 409, as Seller.](g085066_ex10-1.htm) |
| [10.2](g085066_ex10-2.htm) | [Down Payment Agreement for Xeglyze Assets Purchase, dated as of November 20, 2025, by and between Hatchtech Pty Ltd, as Seller and Pelthos Therapeutics Inc. as Buyer.](g085066_ex10-2.htm) |
| [99.1](g085066_ex99-1.htm) | [Press Release.](g085066_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
| \* | Exhibits and/or schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant hereby undertakes to furnish supplementally copies of any of the omitted exhibits and schedules upon request by the SEC; <u>provided</u>, <u>however</u>, that the registrant may request confidential treatment pursuant to Rule 24b-2 under the Exchange Act, for any exhibits or schedules so furnished. |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| Date: January 2, 2026 | **Pelthos Therapeutics Inc.** | **Pelthos Therapeutics Inc.** | **Pelthos Therapeutics Inc.** |
|  | By: | /s/ Francis Knuettel II | /s/ Francis Knuettel II |
|  |  | Name: | Francis Knuettel II |
|  |  | Title: | Chief Financial Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**EXECUTION VERSION**

**<u>Asset Purchase Agreement</u>**

This **Asset Purchase Agreement** (this "**Agreement**") is entered into as of this December 23, 2025, by and between Hatchtech Pty Ltd ACN 098 559 409, an Australian corporation with a principal office at Level 17, 40 City Rd, Southbank, Victoria 3006, Australia ("**Seller**"), and Pelthos Therapeutics Inc., a Nevada corporation with a principal office at 4020 Stirrup Creek Drive, Suite 110, Durham, North Carolina 27703, United States of America ("**Buyer**").

**WHEREAS**, Seller owns or has the exclusive rights to the Intellectual Property (as defined herein) and other rights and obligations related to the Xeglyze Product (as defined herein) for the treatment of human head lice infestation in the Territory (as defined herein);

**WHEREAS**, Buyer desires to purchase and acquire from Seller, and Seller desires to sell, assign, transfer and convey to Buyer, all of Seller's right, title and interest in and to the Transferred Assets (as defined herein); and

**WHEREAS**, the parties desire to reduce their agreement with respect to the foregoing in writing.

**NOW, THEREFORE**, in consideration of the mutual promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and subject to the terms and conditions hereof, the parties agree as follows:

**1.** **Definitions**.

As used in this Agreement, terms defined in the preamble and recitals above shall have the meanings set forth therein, and the following terms shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Abametapir** "
 shall mean the compound 5,5'-dimethyl-2,2'-bipyridine, with the chemical
 formula C<sub>12</sub>H<sub>12</sub>N<sub>2</sub>, also previously designed by Seller
 as Ha44.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Agreement** "
 shall mean this Agreement and all Schedules and Exhibits attached hereto and thereto,
 as the same may from time to time be amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Ancillary Agreements**" shall mean the Down Payment Agreement, the Bill of Sale and any
 other agreement, instrument or other document required to be entered into or delivered
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Bill of Sale**" shall have the meaning assigned to such term in <u>Section 11(a)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Business Day**" shall mean a day other than Saturday, Sunday or any other day on which
 banks located in New York, New York are required or authorized to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Clawback Amount**" shall have the meaning assigned to such term in <u>Section 15(b)(ii)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Closing** "
 shall have the meaning assigned to such term in <u>Section 4</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Closing Clawback Amount**" shall have the meaning assigned to such term in Section 15(b)(ii)
 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Closing Date**" means 29 December 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Confidential Information**" shall have the meaning assigned to such term in <u>Section 13</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Disclosing Party**" shall have the meaning assigned to such term in <u>Section 14</u> of
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Down Payment**" shall mean twenty-five percent (25%) of the Purchase Price, or USD$450,000,
 paid by Buyer to Seller on November 20, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Down Payment Agreement**" shall mean the Down Payment Agreement for Xeglyze Assets
 Purchase, dated as of November 20, 2025, by and between Seller and Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**FDA** "
 shall have the meaning assigned to such term in <u>Section 2(c)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Governmental Approvals**" shall have the meaning assigned to such term in <u>Section 2(c)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Governmental Authority**" shall mean any court, tribunal or arbitrator, or federal, national,
 supranational, state, provincial, municipal, local, or similar government, or governmental,
 regulatory or administrative authority, agency, commission, department, or instrumentality,
 or any other similar authority having governmental or quasi-governmental power or any
 other industry self-regulatory authority, whether foreign or domestic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Intellectual Property**" shall have the meaning assigned to such term in <u>Section 2(a)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Losses** "
 shall have the meaning assigned to such term in <u>Section 14</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Proceeding** "
 shall have the meaning assigned to such term in <u>Section 5(e)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Product Know-How**" shall mean all know-how, trade secrets, confidential information
 and other proprietary data, information, results and materials (whether embodied in any
 medium or form) that are held or used by the Seller in connection with the development,
 manufacturing, regulatory approval, and commercialization of the Xeglyze Product, including
 all designs, plans, specifications, processes, procedures, methods, formulae, compositions,
 test data, manufacturing records, batch records, quality systems and manuals, stability
 data, validation reports, and other technical information, wherever located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Purchase Price**" shall mean USD$1,800,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Receiving Party**" shall have the meaning assigned to such term in <u>Section 13</u> of
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Regulatory Authority**" shall mean any national, supra-national, regional, state or local
 regulatory agency, department, bureau, commission, council or other Governmental Authority
 involved in granting regulatory approvals for pharmaceutical products in such country,
 including the FDA in the United States, and any corresponding national or regional regulatory
 authorities in any country that is a counterpart to the foregoing agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Regulatory Materials**" shall mean all regulatory applications, submissions, notifications,
 communications, correspondences, registrations, approvals and other filings submitted
 to, received from or otherwise conducted with a Regulatory Authority in order to develop,
 manufacture, commercialize or otherwise exploit the Xeglyze Product in a particular country
 or jurisdiction. Regulatory Materials also include (a) minutes of formal and material
 informal meetings with Regulatory Authorities regarding INDs/CTAs, marketing authorization
 applications, and similar filings with respect to the Xeglyze Product; and (b) drug master
 files (if applicable), INDs, marketing authorization applications, and other regulatory
 approvals that allow for the use of the Xeglyze Product in clinical trials or permit
 and maintain the regulatory application in good standing with the relevant Regulatory
 Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Restricted Period**" shall have the meaning assigned to such term in <u>Section 9(a)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Restricted Person**" shall have the meaning assigned to such term in <u>Section 9(b)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Seller Default**" shall have the meaning assigned to such term in <u>Section 15(a)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Seller Default Clawback Amount**" shall have the meaning assigned to such term in <u>Section 15(a</u>) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Transferred Assets**" shall have the meaning assigned to such term in <u>Section 2</u> of
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Territory** "
 means all countries and jurisdictions throughout the world, including their respective
 territories, possessions, and protectorates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Xeglyze Product**" shall mean the product developed by Seller with Abametapir as its
 sole active ingredient for the treatment of head lice infestation in humans.

**2.** **Purchase and Sale of the Transferred Assets.** 

At the Closing, Seller shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase and acquire from Seller, all right, title and interest of Seller in the following assets, (the "**Transferred Assets**"), free and clear of all liens and encumbrances, including, without limitation, all items in the following categories and all other items of a like kind or nature:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 of the intangible assets of Seller relating to the Xeglyze Product, including intellectual
 property used in connection with the Xeglyze Product, including without limitation: (i)
 all patents and patent applications including, but not limited to those set forth on <u>Schedule 2(a)</u> hereto, together with all issuances, divisions, continuations, continuations-in-part,
 reissues, extensions, reexaminations, and renewals thereof; (ii) all trademarks, service
 marks, trade names and registered user names, including registrations and applications
 for registration thereof, together with all goodwill associated therewith, including,
 but not limited to, those set forth on <u>Schedule 2(a)</u> hereto; (iii) all copyright
 registrations and applications therefore including, but not limited to, those set forth
 on <u>Schedule 2(a)</u> hereto; and (iv) all Product Know-How (collectively, the "**Intellectual Property** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 and all royalties, fees, income, payments, and other proceeds now or hereafter due or
 payable with respect to any and all of the Intellectual Property, together with any and
 all claims and causes of action with respect thereto, whether accruing before, on, or
 after the date hereof, including all rights to and claims for damages, restitution, and
 injunctive and other legal and equitable relief for past, present, and future infringement,
 dilution, misappropriation, violation, misuse, breach, or default, with the right but
 no obligation to sue for such legal and equitable relief and to collect, or otherwise
 recover, any such damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All
 books, records, manuals, Regulatory Materials, and other materials, in whatever form
 or medium kept or maintained by Seller and concerning the Transferred Assets, including,
 but not limited to, those set forth in <u>Schedule 2(c)</u> hereto, including, without
 limitation, manufacturing and quality control records and procedures, research and development
 files, U.S. Food and Drug Administration (the "**FDA**") submissions and
 correspondence relating to the Investigational New Drug application IND 77,510 and New
 Drug Application 206966, Clinical Study documents, protocols, reports and files;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To
 the extent their transfer is permitted by law, all governmental licenses, permits, approvals,
 license applications, license amendment applications and products registrations concerning
 the Xeglyze Product ()"**Governmental Approvals** "), all of such Governmental
 Approvals, including, without limitation, any approvals required by the FDA, as listed
 in <u>Schedule 2(d)</u> hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All
 inventory, finished goods, work-in-process, raw materials, components, packaging, supplies,
 equipment, machinery, tooling, computers, hardware, furniture, fixtures, and other tangible
 personal property and tangible materials owned by Seller and used or held for use exclusively
 or primarily in connection with the Xeglyze Product, wherever located (including any
 of the foregoing held at or by Laurus or Group Parima).

**3.** **Payment of Expenses.** 

Buyer and Seller shall each pay all of their own expenses in connection with this Agreement and the transactions contemplated hereby.

**4.** **Closing; Purchase Price; Method of Payment**.

Subject to the terms and conditions of this Agreement, the consummation of the purchase and sale of the Transferred Assets contemplated by this Agreement (the "**Closing**") shall take place virtually by exchange of executed documents on the Closing Date. The amount to be paid by Buyer shall be USD$1,350,000, representing the difference between the Down Payment and the Purchase Price, which shall be wired on the date hereof to the account designated by Seller (including wire instructions) on <u>Schedule 4</u>. Buyer shall on the date hereof provide evidence of a wire transfer of USD$1,350,000 to Seller's account in immediately available funds as specified in <u>Schedule 4</u>.

**5. Representations and Warranties of Seller**. Seller represents and warrants to Buyer on behalf of itself and subsidiaries as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller
 is duly formed, validly existing and in good standing (except to the extent that the
 failure to be in good standing would not be material to Seller) under the laws of Australia
 and has all requisite power and authority to own or lease its assets and properties and
 to carry on its business as now being conducted. Seller is duly qualified to do business
 as a foreign entity in each jurisdiction in which the character of the assets or properties
 owned or leased by it or the nature of its business make such qualification necessary,
 except to the extent that the failure to be so qualified would not reasonably be expected
 to result in a material liability to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller
 has all requisite corporate power and authority to execute and deliver this Agreement
 and, subject to the approvals discussed below, to consummate the transactions contemplated
 hereby. The execution and delivery of this Agreement and the consummation of the transactions
 contemplated hereby have been duly and validly authorized and approved by Seller and
 no other corporate proceeding on the part of Seller or its members is necessary to authorize
 this Agreement. This Agreement has been duly and validly executed and delivered by Seller
 and constitutes a legal, valid and binding obligation of Seller, enforceable against
 it in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
 conveyance, reorganization, moratorium and similar laws affecting creditors' rights
 generally and subject, as to enforceability, to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 execution, delivery and performance by Seller of this Agreement and the Ancillary Agreements
 to which Seller is or will be a party and the consummation of the transactions hereby
 and thereby does not and will not: (i) violate, contravene or conflict with any provision
 of the charter documents bylaws or similar organizational documents of Seller; (ii) violate,
 contravene or conflict with any law or order currently in effect applicable to Seller;
 (iii) contravene, conflict with, result in the violation or breach of any of the terms
 or conditions of, or constitute (with or without notice or lapse of time or both) a material
 default under or an event which would, or could reasonably be expected to give rise to,
 any right of notice, modification, acceleration, payment, suspension, withdrawal, cancellation
 or termination under, or in any manner release any party thereto from any obligation
 under, or otherwise affect any rights of Seller under, any material contract to which
 Seller is a party; or (iv) grant any other person any rights, options, assignment, transfers,
 licenses, or interests in or to any Intellectual Property or cause (x) any Intellectual
 Property to be abandoned, cancelled, expired, forfeited, or terminated, (y) a loss of,
 or encumbrance or restriction on, any Intellectual Property or (z) the release or delivery
 of any Intellectual Property to any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller
 is the sole and exclusive legal and beneficial, and with respect to any registered Intellectual
 Property, record, owner of all right, title, and interest in and to the Transferred Assets,
 free and clear of any and all liens, licenses, options, covenants not to sue, or other
 encumbrances, including, without limitation, any claims, liens, or interests asserted
 or assertable by Dr. Reddy's Laboratories Ltd., its affiliates, or any successor
 or assign thereof. All inventors, employees, consultants, and contractors who contributed
 to the conception, development, or reduction to practice of any Transferred Asset have
 validly and irrevocably assigned their entire right, title, and interest in and to such
 Transferred Asset to Seller, and no such individual or entity retains any rights or claims
 thereto. The Transferred Assets constitute all of the assets that Seller uses or holds
 in connection with the Xeglyze Product. No affiliate or licensee of Seller is engaged
 in any business related to the Xeglyze Product or otherwise has any right, title or interest
 in or to the Transferred Assets. Seller has taken all reasonable and necessary steps
 to maintain and enforce the Intellectual Property and to preserve the confidentiality
 of all Product Know-How included therein, including by requiring all persons having access
 thereto to execute binding, written non-disclosure agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To
 the best knowledge of Seller, it is in substantial compliance with all laws, statutes,
 ordinances, rules, regulations, orders, judgements or decrees applicable to it and its
 business, and Seller has not received any notice that any violation or potential violation
 or any action, suit, proceeding, hearing, investigation, charge, compliant, claim, demand
 or notice has been filed alleging failure to comply (a "**Proceeding** ").
 There are no legal, governmental or other Proceedings pending or threatened in writing
 against Seller or related to or affecting the Xeglyze Product or any of the Transferred
 Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To
 the best knowledge of Seller, the Transferred Assets, and the use, manufacture, importation,
 offer for sale, sale, and commercialization thereof by Seller or any other person prior
 to the Closing, do not infringe, misappropriate, or otherwise violate and have not infringed,
 misappropriated, or otherwise violated, the intellectual property or proprietary rights
 of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No
 consent, approval or authorization of, or designation, declaration or filing with, any
 governmental authority or other third party is required on the part of Seller with respect
 to Seller's execution or delivery of this Agreement, or the consummation of the
 transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Seller
 is not in default, and has no knowledge that any third party is in default under, any
 license, sublicense or other material agreement with respect to the Transferred Assets.

**6.** **Representations and Warranties of Buyer**. Buyer represents and warrants to Seller as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer
 has all requisite corporate power and authority to execute and deliver this Agreement
 and, subject to the approvals discussed below, to consummate the transactions contemplated
 hereby. The execution and delivery of this Agreement and the consummation of the transactions
 contemplated hereby have been duly and validly authorized and approved by the Board of
 Directors and no other corporate proceeding on the part of Buyer or its stockholders
 is necessary to authorize this Agreement. This Agreement has been duly and validly executed
 and delivered by Buyer and constitutes a legal, valid and binding obligation of Buyer,
 enforceable against it in accordance with its terms, subject to applicable bankruptcy,
 insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting
 creditors' rights generally and subject, as to enforceability, to general principles
 of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer
 acknowledges that financing is not a condition to its obligation to consummate the transactions
 contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To
 Buyer's knowledge, neither the execution nor the delivery of this Agreement, nor
 the consummation of the transactions contemplated hereby, will conflict with or result
 in any violation of or constitute a default under any term of its Articles of Incorporation
 or Bylaws, or any material agreement to which it is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer
 has not formulated an intent to make a claim for a breach of any warranty given by the
 Seller in <u>Section 5</u> and is not aware of any circumstances as at the date of this
 Agreement that would give rise to a claim against Seller. Notwithstanding the foregoing,
 nothing in this <u>Section 6(d)</u> shall constitute a waiver of any rights of Buyer
 to make a claim for breach of any representation, warranty or covenant given by Seller,
 subsequent to the consummation of the transactions contemplated hereby.

**7. Buyer's Knowledge/Investigation; Disclaimer**. Buyer has conducted such investigation of Seller as it has deemed necessary in order to make an informed decision concerning the transactions contemplated by this Agreement. Buyer represents and warrants that it is sufficiently experienced and qualified to enable it to make an informed investigation of any and all matters material and relevant to the purchase of the Transferred Assets. Buyer has reviewed all of the documents, reports, records and other materials identified in the schedules hereto and has had an opportunity to ask all questions Buyer has deemed relevant. For the purpose of conducting these investigations, Buyer has employed the services of its own agents, representatives, experts and consultants. Buyer acknowledges that it has been given free opportunity to make such enquiries of Seller as it thinks fit and that it is satisfied with the responses it has been given. In entering into this Agreement, Buyer is relying solely upon the representations and warranties of Seller expressly set forth in <u>Section 5</u> and not upon any other statements, representations, or information (whether written or oral) provided by or on behalf of Seller to Buyer.

**8. Certain Covenants and Agreements**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Further Assurances**. Each of Seller and Buyer shall use its best efforts to cause the transactions
 contemplated by this Agreement to be consummated and to otherwise satisfy all of the
 conditions set forth herein, and shall give full cooperation to the other party to ensure
 an orderly transition of ownership of the Transferred Assets. Seller agrees that subsequent
 to the Closing, upon the reasonable request of Buyer from time to time, it shall execute
 and deliver, or cause to be executed and delivered, such further instruments and take
 such other actions as may be necessary or desirable to carry out the transactions contemplated
 by this Agreement and the Ancillary Agreements or to vest, perfect or confirm of record
 or otherwise in Buyer any and all right, title and interest in, to and under any of the
 Transferred Assets as a result of or in connection with the transactions contemplated
 by this Agreement and the Ancillary Agreements. In addition, from and after the Closing,
 Seller shall use commercially reasonable efforts to assist Buyer with the launch of the
 Xeglyze Product by making Seller's personnel, with the appropriate knowledge, experience
 or background, reasonably available to Buyer, at commercially reasonable rates to be
 mutually agreed upon, to consult with Buyer on an as needed basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Regulatory**.
 Within five (5) Business Days after the Closing, or as soon as practicable after that
 time, Seller shall (i) transfer to Buyer all Product Know-How and other Intellectual
 Property, and all embodiments thereof, then-existing, in its possession and control,
 and not previously provided to Buyer and (ii) to the extent transferable in accordance
 with applicable law, assign and transfer to Buyer (or its designee) all of its right,
 title and interest in the Regulatory Materials for or in respect of the Xeglyze Product
 held or filed by or on behalf of Seller, along with copies of any such Regulatory Materials
 in Seller's possession. To the extent any Product Know-How or other Intellectual
 Property relating to the Xeglyze Product is in the possession of or under the control
 of a third party, then Seller shall (i) at Buyer's request, expressly authorize
 such third party to make such Product Know-How or Intellectual Property available to
 Buyer, and (ii) not take any action which would limit the right or ability of such third
 party to transfer or otherwise make such Product Know-How or Intellectual Property available
 to Buyer. Within ten (10) days following the Closing, Seller shall initiate all required
 actions to delist the Xeglyze Product from any industry compendia (*i.e.*, Red Book,
 FDB and Gold Standard) and any National Drug Codes applicable to the Xeglyze Product
 and promptly provide Buyer with all documentation evidencing the completion of such delistings
 upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Wrong Pocket Provisions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If,
 at any time following the Closing, any Transferred Asset which should have been transferred
 to Buyer pursuant to the terms of this Agreement and the Ancillary Agreements was not
 transferred to Buyer as contemplated by this Agreement or the Ancillary Agreements, then
 Seller and Buyer shall use commercially reasonable efforts to promptly transfer such
 Transferred Asset to Buyer for no additional consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If,
 at any time following the Closing, any asset that does not constitute a Transferred Asset
 which should have been retained by Seller pursuant to the terms of this Agreement or
 the Ancillary Agreements was transferred to Buyer, then Seller and Buyer shall use commercially
 reasonable efforts to promptly transfer such asset to Seller for no additional consideration.

**9.** **Restrictive Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Non-Competition**.
 Seller covenants and agrees that, until the expiration, lapse, or final judicial invalidation
 of the last-to-expire patent included in the Transferred Assets (the "**Restricted Period** "), Seller will not directly or indirectly, engage or participate in
 any manner (as an owner, equity holder, financing source, director, manager, officer,
 employee, agent, representative, consultant, service provider or otherwise) in any business
 (i) utilizing the Xeglyze Product or (ii) primarily engaged in the research,
 development or commercialization of a drug program specifically targeting the treatment
 of head lice infestation in humans. Nothing contained in this <u>Section 9(a)</u> shall
 in and of itself prohibit Seller from (A) the passive ownership, directly or indirectly,
 of less than five percent (5%) of any securities of any company traded on a national
 securities exchange or traded in the over-the-counter market, (B) directly or indirectly,
 engaging or participating (as an owner, equity holder, financing source, director, manager,
 officer, employee, agent, representative, consultant, service provider or otherwise)
 in any business not otherwise utilizing the Xeglyze Product; provided in each case that
 Seller is not otherwise in breach of this <u>Section 9(a)</u>, or (C) undertaking any
 act or conduct expressly contemplated by this Agreement or any Ancillary Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Solicitation**.
 Seller covenants and agrees that, during the Restricted Period, Seller will not, directly
 or indirectly solicit, induce or recruit, or attempt to solicit, induce or recruit, for
 employment or engagement, any individual who is, or was at any time during the twelve
 (12)-month period immediately preceding the Closing Date, an employee or individual independent
 contractor of Buyer, LNHC, Inc., Chromocell Therapeutics Australia Pty Ltd., or Channel
 Pharmaceutical Corporation (each, a "**Restricted Person** "), or otherwise
 seek to adversely influence or alter any Restricted Person's relationship with
 the business and/or Buyer or any of its affiliates; provided, however, (i) general solicitations
 for employment or services in a newspaper or any other media or on the internet, or through
 a search firm, which general solicitations do not specifically target any employee or
 independent contractor of Buyer shall not constitute violations of this <u>Section 9(b)</u>,
 and (ii) this <u>Section 9(b)</u> shall not prevent Seller from soliciting, hiring, or
 engaging any such person who: (A) responds to solicitations of employment not specifically
 directed at employees or independent contractors of Buyer (including by a recruiter or
 search firm), (B) has not been employed by Buyer for at least six (6) months prior to
 commencement of employment or engagement discussions between the Seller and such person
 or (C) initiates discussions regarding such employment or engagement without any direct
 or indirect solicitation by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Non-Disparagement**.
 Each party covenants and agrees that such party will, and will cause its respective affiliates
 not to, directly or indirectly, make, cause to be made or condone the making of any statement
 or other communication, written or otherwise, that could constitute disparagement or
 criticism of, or that could otherwise be considered to be derogatory or detrimental to,
 or otherwise reflect adversely on, harm the reputation of, or encourage any adverse action
 against any other party. Nothing in this <u>Section 9(c)</u> shall limit any party's
 or its respective affiliate's truthful testimony compelled by law.

**10. Acknowledgements; Remedies**. Each party acknowledges and agrees that (i) the covenants and agreements set forth in this <u>Section 10</u>, including, but not limited to the Restricted <u>Period,</u> were a material inducement to such party to enter into this Agreement and to perform its respective obligations hereunder, (ii) the restrictions and covenants in this <u>Section 10</u>, and the rights and remedies conferred upon such party, are necessary to protect the goodwill of the Xeglyze Product, and (iii) the length of time, scope and geographic coverage of the covenants set forth in this <u>Section 10</u>, including, but not limited to the Restricted Period<u>,</u> are reasonable. Such party further acknowledges and agrees that irreparable injury may result to another party if such first party or any of its respective affiliates breaches any of the terms of this <u>Section 10</u>, and that in the event of an actual breach by such first party or any of its respective affiliates of any of the provisions contained in this <u>Section 10</u>, such other party may not have any adequate remedy at law. Each party accordingly agrees that in the event of any actual or threatened breach by any party or any of its respective affiliates of any of the provisions contained in this <u>Section 10</u>, the applicable other party shall be entitled to injunctive and other equitable relief without (A) posting any bond or other security, (B) proving actual damages and (C) showing that monetary damages are an inadequate remedy. Nothing contained herein shall be construed as prohibiting any party from pursuing any other remedies available to it for such breach, including the recovery of any damages that it is able to prove. Each party shall cause its respective affiliates to comply with this <u>Section 10</u> and shall be liable for any breach by any of its affiliates of this <u>Section 10</u>.

**11. Seller's Deliverables**. At the Closing, Seller shall deliver to Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 counterpart signature page to the bill of sale conveying the Transferred Assets to Buyer
 in the form attached as <u>Schedule 11</u> (the "**Bill of Sale** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 requisite transfer and assignment agreements and any other items reasonably requested
 by Buyer as necessary or appropriate to confirm the sale, transfer, assignment conveyance
 and delivery of the Transferred Assets to Buyer and to vest all rights, title and interest
 in the Transferred Assets in Buyer.

**12. Buyer's Deliverables**. At the Closing, Buyer shall deliver to Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 counterpart signature page to the Bill of Sale conveying the Transferred Assets to Seller
 in the form attached as <u>Schedule 11</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 requisite transfer and assignment agreements and any other items reasonably requested
 by Seller as necessary or appropriate to confirm the sale, transfer, assignment conveyance
 and delivery of the Transferred Assets to Buyer and to vest all rights, title and interest
 in the Transferred Assets in Buyer.

**13. Confidentiality**. Between the date hereof and the Closing Date, or should the transactions contemplated hereby not be consummated, Seller and Buyer agree that all information heretofore or hereinafter furnished by or on behalf of one party hereto (the "**Disclosing Party**") to the other party hereto (the "**Receiving Party**") shall be deemed confidential (the "**Confidential Information**"), and that without the prior written consent of the Disclosing Party, the Receiving Party shall not disclose any Confidential Information to any person, firm or entity, other than the Receiving Party's employees or agents to the extent necessary to evaluate the acquisition of the Transferred Assets prior to the Closing Date. The Receiving Party agrees not to duplicate the Confidential Information without the prior written consent of the Disclosing Party, and not to use any of it for any purpose other than in connection with the confidential review referred to above. If the transactions contemplated by this Agreement are not completed, the Receiving Party agrees that it will return to the Disclosing Party, promptly upon its written demand therefor, all written or tangible Confidential Information received by it, without retaining copies thereof. Each party hereto agrees that any communication relating to the proposed acquisition, either oral or in writing, to any governmental agency or the media, shall be done in conjunction with one another. The term Confidential Information does not include any information which is, or becomes, generally available to the public other than as a result of disclosure by the Disclosing Party or its respective agents, employees, representatives or contractors.

**14. Indemnification of Buyer**. Seller agrees to indemnify, defend and hold Buyer, its successors and assigns harmless from and against any losses, damages, liabilities, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, and expenses (including reasonable attorneys' fees and expenses) ("**Losses**") in connection with, relating to, or arising out of, or by virtue of, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 misrepresentation or breach of warranty on the part of Seller under <u>Section 5</u> of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 breach of covenants on the part of Seller under <u>Section 8</u> or <u>Section 9</u> of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any
 claim asserted against the title to the Transferred Assets and Buyer's right to
 the full benefits thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provided
 that Seller is not liable to the extent the Losses would not have arisen but for an act
 or omission, being an act or omission other than in the ordinary course of business,
 of Buyer occurring after the date of this Agreement.

All of the representations and warranties set forth in this Agreement shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.

**15. Purchase Price Clawbacks.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Seller Default Clawback**. In addition to, and without limiting, any indemnification or other
 remedies available to Buyer under <u>Section 14</u> of this Agreement, in the event that
 Closing takes place on or prior to the Closing Date but Seller materially breaches any
 of its other representations, warranties, covenants or other obligations under this Agreement
 or any Ancillary Agreement relating to Seller's title to or the transfer of the
 Intellectual Property and fails to cure such breach within ten (10) days following Seller's
 receipt of written notice thereof(each, a "**Seller Default** "), Buyer
 shall be entitled to recover from Seller all Losses incurred by Buyer arising from such
 Seller Default, up to a maximum amount equal to one hundred percent (100%) of the Purchase
 Price (the "**Seller Default Clawback Amount** "). For the avoidance of
 doubt, Seller is not liable for any delay of a registry in processing the registration
 of change of ownership to the Buyer of any item of registered Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Closing Clawback**. In the event that Buyer has wired USD$1,350,000 to Seller's account
 pursuant to <u>Section 4</u> of this Agreement and the Closing does not occur on or prior
 to the Closing Date due to Seller's breach of <u>Section 11</u> of this Agreement,
 Buyer shall be entitled to recover from Seller one hundred percent (100%) of the Purchase
 Price (the "**Closing Clawback**" and together with the Seller Default
 Clawback Amount, the "**Clawback Amounts** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Payment; Set-Off**. Any Clawback Amounts owed to Buyer pursuant to this <u>Section 15</u> shall
 be paid by Seller to Buyer within three (3) days after written demand. Buyer may set
 off any unpaid portion of such Clawback Amount against any amounts otherwise payable
 to Seller (and not yet paid) under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Purchase Price Adjustment**. The parties acknowledge and agree that the Clawback Amounts are
 intended as a bona fide post-closing adjustment to the Purchase Price to account for
 Seller's failure to deliver good title to the Intellectual Property, and shall
 not be considered a penalty.

**16. Arbitration**. Any dispute or disagreement arising out of, or relating to this Agreement, the breach hereof, or coverage of this arbitration provision, shall be settled by arbitration which shall be in accordance with the Rules of the International Chamber of Commerce. Any such arbitration shall be heard and conducted in English. All conclusions of law reached by the arbitrators shall be made in accordance with the substantive law of the State of Delaware. Any award rendered by the arbitrator(s) shall be accompanied by a written opinion setting forth the findings of fact and conclusions of law relied upon in reaching their decision. Each party may obtain judicial review of the arbitrators' decision, but only as to conclusions of law. Unless otherwise indicated by the Rules referenced above, the costs and expenses of the successful party related to the arbitration shall be met by the unsuccessful party.

**17. Publicity**. Any public notice, press release or other publicity concerning the transactions contemplated by this Agreement shall be approved by both parties in writing prior to issuance.

**18. Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 waiver by any of the parties of a breach of any provision of this Agreement shall not
 operate or be construed as a waiver or a breach of any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject
 to applicable law, this Agreement may be amended, modified and supplemented, only by
 written agreement of Buyer and Seller, at any time prior to the Closing Date with respect
 to any of the terms contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All
 notices, consents, demands, requests, approvals and other communications which are required
 or may be given hereunder shall be in writing and shall be deemed to have been duly given
 if sent by email to the email addresses designated by the parties for such purpose. Any
 such notice shall be deemed effective upon transmission, provided that no delivery failure
 notification is received by the sender.

If notice is to Seller, then to:

Hatchtech Pty Ltd

Attention: Hugh Alsop

Email:

with a copy to Brigitte Smith, email:

If notice is to Buyer, then to:

Pelthos Therapeutics Inc.

Attention: Scott Plesha

Email:

with a copy to David Danovitch, email:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This
 Agreement, together with the Ancillary Agreements delivered in connection herewith, embodies
 the entire agreement and understanding of the parties hereto with respect to the subject
 matters hereof and thereof and supersedes any prior agreement and understanding between
 the parties. Schedules referred to are incorporated herein and made a part of the Agreement.
 The parties confirm that, notwithstanding the reference in the Down Payment Agreement
 to an Asset Sale Agreement, dated as of November 20, 2025, by and between Seller and
 Buyer, this document shall comprise the Asset Sale Agreement referred to in the Down
 Payment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All
 pronouns and any variations thereof shall be deemed to refer to masculine, feminine,
 neuter, singular or plural, as the identity of the person(s) may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This
 Agreement shall be governed by the laws of the State of Delaware without regard to principles
 of conflicts of law thereof and shall be binding upon and shall inure to the benefit
 of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any
 provision of this Agreement which is prohibited or unenforceable in any jurisdiction
 shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
 without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
 in any jurisdiction shall not invalidate or render unenforceable such provision in any
 other jurisdiction, provided such prohibited or unenforceable provision does not affect
 the essence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This
 Agreement may be executed in one or more counterparts, each of which shall be deemed
 to be an original, any of which may be executed and delivered in electronic format or
 by electronic means, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 captions and headings throughout this Agreement are for convenience and reference only,
 and shall in no way be deemed to define, modify, or add to the construction of any provision
 of, or to the scope or intent of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All
 of the representations set forth in this Agreement shall survive the consummation of
 the transactions contemplated by this Agreement

Notwithstanding anything to the contrary contained in this Agreement, except for breaches of <u>Section 13</u> of this Agreement, neither party shall in any circumstances have any liability to the other party in respect of any claim or claims to the extent that the amounts claimed by the other party exceeds in aggregate the sum or sums paid by Buyer to Seller for the purchase of the Transferred Assets.

[Signature Page Follows]

**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement as of the date first written above by their respective officers thereunto duly authorized.

**Executed by**

**HATCHTECH PTY LTD ACN 098 559 409**<br> **in accordance with section 127(1)** <br> **of the *Corporations Act 2001* (Cth)**

---

| | | |
|:---|:---|:---|
| /s/ Brigitte Smith | By: | /s/ Hugh Alsop |
| Name: Brigitte Smith | Name: Hugh Alsop | Name: Hugh Alsop |
| Title: Director | Title: Director | Title: Director |
| **WITNESS:** | **PELTHOS THERAPEUTICS INC.** | **PELTHOS THERAPEUTICS INC.** |

---

---

| | | |
|:---|:---|:---|
| /s/ Francis Knuettel II | By: | /s/ Scott M. Plesha |
| Name: Francis Knuettel II | Name: Scott M. Plesha | Name: Scott M. Plesha |
| Title: Chief Financial Officer | Title: Chief Executive Officer | Title: Chief Executive Officer |

---

<u>SCHEDULES</u>

## Exhibit 10.2

**Exhibit 10.2**

<u>**Down Payment Agreement for Xeglyze Assets Purchase**</u>

This **Down Payment Agreement for Xeglyze Assets Purchase** (this "**Agreement**") is made and entered into as of November 20, 2025, by and between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **"Seller":** Hatchtech
 Pty Ltd, located at Level 17, 40 City Rd, Southbank, Victoria 3006, Australia; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. "**Buyer":** Pelthos
 Therapeutics Inc., located at 4020 Stirrup Creek Drive, Suite 110, Durham, North Carolina
 27703, United States of America.

**1. Description of the Transferred Assets.** The Seller agrees to sell, and the Buyer agrees to purchase, the "Transferred Assets" as defined in Section 2 of that certain Asset Purchase Agreement, entered into as of November 20, 2025, by and between the Seller and the Buyer (the "**Asset Purchase Agreement**"). Capitalized terms used in this Agreement but not defined in this Agreement shall have the meanings ascribed to them in the Asset Purchase Agreement.

**2. Purchase Price**. As set forth in the Asset Purchase Agreement, the parties agree that the total Purchase Price for the Transferred Assets is $1.8 million.

**3. Down Payment**. The Buyer agrees to pay a Down Payment equal to twenty-five (25%) of the Purchase Price, or $450,000. This payment shall be made by Buyer on or before November 20, 2025, which shall be wired to the account designated by Seller on Schedule 2 of the Asset Purchase Agreement. Buyer acknowledges that the Down Payment shall be non-refundable, unless Seller fails to deliver the Transferred Assets in accordance with the terms of the Asset Purchase Agreement.

**4. Closing Payment**. The remaining seventy-five (75%) balance of Purchase Price shall be payable on the Closing Date in accordance with Section 4 of the Asset Purchase Agreement.

**5. Delivery of Asset(s).** The Seller agrees to deliver the Transferred Assets to the Buyer at Closing, provided all covenants and conditions to Closing set forth in the Asset Purchase Agreement have been met. The Seller shall retain ownership of the Transferred Asset until the Purchase Price, including the Down Payment, has been paid in full.

**6. Governing Law.** This Agreement shall be governed by the laws of the State of Delaware without regard to principles of conflicts of law thereof and shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

**7. Assignment.** Subject to applicable law, this Agreement may be amended, modified and supplemented, only by written agreement of the Buyer and the Seller, at any time prior to the Closing Date with respect to any of the terms contained herein.

**8. Entire Agreement.** This Agreement constitutes the entire understanding between the parties with respect to the Down Payment and supersedes any and all prior agreements or understandings with respect thereto. In the event that the terms of this Agreement are inconsistent with, conflict with or contradict the terms of the Asset Purchase Agreement, the terms of this Agreement shall govern and prevail.

[SIGNATURE PAGE FOLLOWS]

**IN WITNESS WHEREOF**, the parties have duly executed this Agreement as of the date first written above.

**SELLER:**

**HATCHTECH PTY LTD**

By: <u>/s/ Hugh Alsop</u> 

Name: Hugh Alsop<br>Title: Director

**BUYER:**

**PELTHOS THERAPEUTICS INC.**

By: <u>/s/ Scott M. Plesha</u> 

Name: Scott M. Plesha<br>Title: Chief Executive Officer

## Exhibit 99.1

**Exhibit 99.1**![](image_001.jpg)

FOR IMMEDIATE RELEASE

**Pelthos Therapeutics Acquires Xeglyze® (abametapir) Topical Treatment for Head Lice**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acquisition
 adds complementary asset to the Pelthos commercial portfolio

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Xeglyze
 is a novel, FDA-approved prescription medication indicated for the topical treatment of head
 lice infestation in patients 6 months of age and older

DURHAM, N.C., January 5, 2026 — Pelthos Therapeutics Inc. (NYSE American: PTHS), a biopharmaceutical company committed to commercializing innovative therapeutic products for unmet patient needs ("Pelthos"), today announced it has acquired Xeglyze® (abametapir) from Hatchtech Pty Ltd., an Australian biotech company, for $1.8 million.

Xeglyze is a pediculicide indicated for the topical treatment of head lice infestation in patients 6 months of age and older. The prescription medication was approved by the U.S. Food and Drug Administration ("FDA") in July 2020.

The acquisition will provide Pelthos with the ability to commercialize Xeglyze worldwide, and there are no future milestone, royalty or other payments owed to Hatchtech.

"This acquisition allows us to add another complementary FDA-approved product to our portfolio," said Scott Plesha, CEO of Pelthos. "Xeglyze is a highly differentiated product with a strong clinical profile. We believe it aligns well with our existing products and commercial infrastructure, making this an attractive investment opportunity for Pelthos. This addition will allow us to continue to execute on our strategy of commercializing innovative therapeutic products in 2026 that address unmet patient needs, delivering long-term value for our shareholders."

Pelthos plans to relaunch Xeglyze in the first half of 2027.

In the U.S., infestation with head lice is most common among preschool- and elementary-school age children and their household members and caretakers. An estimated 6 to 12 million infestations occur each year in the U.S. among children 3 to 11 years of age. Some studies suggest that girls get head lice more often than boys, due to more frequent head-to-head contact.

"Despite how common head lice is, there have been few major advances in controlling infestations in recent years," said Stephen W. Stripling, MD, Pediatrician, at The Medical University of South Carolina. "Most head lice products have little ovicidal activity and require two treatments approximately 7 to 10 days apart, with the second application required to treat those lice that survived the first treatment and were not physically removed by nit combing. Not complying with this regimen and having trouble choosing the optimal time for the second application are major drawbacks in using these products. Xeglyze has demonstrated both ovicidal and lousicidal activity and offers the potential for a more effective treatment using only a single, 10-minute application."

**About Xeglyze® (abametapir)**

Xeglyze is a novel, patent protected prescription medication indicated for the topical treatment of head lice infestation in patients 6 months of age and older. Abametapir, the active ingredient in Xeglyze, inhibits metalloproteinases that have a role in physiological processes critical to egg development and survival of lice. The single, 10-minute application does not require nit combing and has sufficient volume in each bottle to treat either short or long hair.

**IMPORTANT SAFETY INFORMATION**

**Indications and Usage:** Xeglyze is a pediculicide indicated for the topical treatment of head lice infestation in patients 6 months of age and older. Xeglyze should be used in the context of an overall lice management program:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wash
 (with hot water) or dry-clean all recently worn clothing, hats, used bedding and towels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wash
 personal care items such as combs, brushes and hair clips in hot water

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Use
 a fine-tooth comb or special nit comb to remove dead lice and nits

**Dosage and Administration:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For
 topical use only. Not for oral, ophthalmic, or intravaginal use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shake
 well before use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Apply
 Xeglyze to dry hair in an amount sufficient (up to the full content of one bottle) to thoroughly
 coat the hair and scalp. Avoid contact with eyes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Massage
 Xeglyze into the scalp and throughout the hair; leave on the hair and scalp for 10 minutes
 and then rinse off with warm water.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Treatment
 with Xeglyze involves a single application. Discard any unused product. Do not flush contents
 down sink or toilet.

**Contraindications**: None.

**Warnings and Precautions:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risk
 of Neonatal Benzyl Alcohol Toxicity: Systemic exposure to benzyl alcohol has been associated
 with serious adverse reactions and death in neonates and low birth-weight infants. Safety
 and effectiveness in pediatric patients below the age of 6 months have not been established.
 Use is not recommended in pediatric patients under 6 months of age because of the potential
 for increased systemic absorption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risk
 of Benzyl Alcohol Toxicity from Accidental Ingestion: Administer only under direct supervision
 of an adult.

**Adverse Reactions:** Most common adverse reactions (incidence of ≥ 1%) were erythema, rash, skin burning sensation, contact dermatitis, vomiting, eye irritation, pruritus, and hair color changes.

For complete safety information and product dosing instructions, refer to the product label.

**About Pelthos Therapeutics**

Pelthos Therapeutics is a biopharmaceutical company committed to commercializing innovative, safe, and efficacious therapeutic products to help patients with unmet treatment burdens. The company's lead product ZELSUVMI™ (berdazimer) topical gel, 10.3%, for the treatment of molluscum contagiosum, was approved by the U.S. Food and Drug Administration in 2024. More information is available at <u>www.pelthos.com</u>. Follow Pelthos on <u>LinkedIn</u> and <u>X</u>.

**Forward-Looking Statements**

This press release contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, regarding Pelthos' current expectations. All statements, other than statements of historical fact, could be deemed to be forward-looking statements. In some instances, words such as "plans," "believes," "expects," "anticipates," and "will," and similar expressions, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our good faith beliefs (or those of the indicated third parties) and speak only as of the date hereof. These forward-looking statements include, without limitation, references to our expectations regarding (i) our belief that the acquisition of Xeglyze will provide the Company with the ability to commercialize the product worldwide, (ii) our belief that Xeglyze aligns well with the Company's existing products and commercial infrastructure, (iii) our belief that Xeglyze is an attractive investment opportunity for the Company, (iv) our belief that the acquisition of Xeglyze will allow the Company to continue to execute on its strategy of commercializing therapeutic products in 2026 that address unmet patient needs and delivering long-term value to the Company's shareholders, (v) the Company's plans and timeline with respect to the launch of Xeglyze, and (vii) the Company's future opportunities, strategy and plans in the market. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those set forth in such forward-looking statements include, but are not limited to, risks and uncertainties related to there being no guarantee that the trading price of the combined company's Common Stock will be indicative of the combined company's value or that the combined company's Common Stock will become an attractive investment in the future; we may rely on collaborative partners for milestone payments, royalties, materials revenue, contract payments and other revenue projections and may not receive expected revenue; we and our partners may not be able to timely or successfully advance any product(s) in our internal or partnered pipeline or receive regulatory approval and there may not be a market for the product(s) even if successfully developed and approved; and changes in general economic conditions, including as a result of war, conflict, epidemic diseases, the implementation of tariffs, and ongoing or future litigation could expose us to significant liabilities and have a material adverse effect on us. These and other risks and uncertainties are described more fully in our filings with the U.S. Securities and Exchange Commission. The information in this press release is provided only as of the date of this press release, and we undertake no obligation to update any forward-looking statements contained in this press release based on new information, future events, or otherwise, except as required by law.

**Contacts**

Investors:<br>LifeSci Advisors, LLC<br>Mike Moyer, Managing Director<br>mmoyer@lifesciadvisors.com

Media:<br>KWM Communications<br>Kellie Walsh<br>pelthos@kwmcommunications.com<br>(914) 315-6072

<sup>1</sup> https://www.cdc.gov/lice/about/head-lice.html