Pelthos Therapeutics Inc 10-Q for FY2026 Q3

Pelthos Therapeutics Inc. (PTHS)

10-Q 2026-11-12 For: 2026-09-30

Added on November 12, 2026

About this 10-Q

Pelthos Therapeutics Inc filed this 10-Q on November 12, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $15.4M; up 107.9% from $7.41M a year earlier
Net loss: $7.9M; compared with a net loss of $16.24M a year earlier
Diluted EPS: -$2.04; compared with -$5.30 a year earlier

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☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

			For the quarterly period ended September 30, 2026

			or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Nevada						86-3335449
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Large accelerated filer ☐						Accelerated filer ☐
Non-accelerated filer ☒						Smaller reporting company ☒
						Emerging growth company ☒


			Page Number
PART I: FINANCIAL INFORMATION			4
Item 1. Financial Statements			4
Condensed Consolidated Balance Sheets (unaudited)			4
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)			5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (unaudited)			6
Condensed Consolidated Statements of Cash Flows (unaudited)			8
Notes to Condensed Consolidated Financial Statements (unaudited)			10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			57
Item 3. Quantitative and Qualitative Disclosures About Market Risk			81
Item 4. Controls and Procedures			82

PART II. OTHER INFORMATION			84
Item 1. Legal Proceedings			84
Item 1A. Risk Factors			84
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			87
Item 3. Defaults Upon Senior Securities			87
Item 4. Mine Safety Disclosures			87
Item 5. Other Information			87
Item 6. Exhibits			87

SIGNATURES			90


	September 30, 2026		December 31, 2025

ASSETS	(Unaudited)
Cash and cash equivalents	$	17,690	$	17,973
Restricted cash	473		50
Accounts receivable, net	13,413		8,858
Inventory	21,471		23,574
Prepaid expenses and other current assets	3,019		2,955
Total current assets	56,066		53,410

Property and equipment, net	8,512		9,586
Operating lease right-of-use assets, net	2,933		3,250
Intangible assets, net	36,344		39,470
Goodwill	24,681		24,681
Other assets	281		—
Total assets	$	128,817	$	130,397

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	3,717	$	2,986
Accrued expenses	9,143		8,030
Accrued expenses - related party	4,012		2,334
Accrued milestones - related party	10,000		5,000
Contingent consideration	1,000		2,200
Operating lease liabilities, current portion	650		635
Deferred revenue, current portion	729		966


Other liabilities	819		1,963
Other liabilities - related party	1,365		1,879
Total current liabilities	31,435		25,993
Operating lease liabilities, net of current portion	2,446		2,752
Deferred revenue, net of current portion	911		1,280

Convertible notes payable - related party	38,410		31,441
Venture loan and security agreement, net	26,845		—
Other long-term liabilities	21,447		18,908
Other long-term liabilities - related party	13,509		11,142
Total liabilities	135,003		91,516

Commitments and contingencies (Note 11)


STOCKHOLDERS’ EQUITY
Preferred stock Series A, $0.0001 par value, 150,000 shares authorized, 51,479 and 56,418 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively	—		—
Preferred stock Series C, $0.0001 par value, 5,000 shares authorized, 2,600 and 2,600 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively	—		—
Common stock, $0.0001 par value, 200,000,000 shares authorized, 3,895,017 and 3,234,423 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively	—		—
Additional paid in capital	111,675		103,675
Accumulated other comprehensive income	3,318		—
Accumulated deficit	(121,179)		(64,794)
Total stockholders' (deficit) equity	(6,186)		38,881

Total liabilities and stockholders' equity	$	128,817	$	130,397


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025

Revenue
Net product revenues	$	15,213	$	7,112	$	41,298	$	7,112
License and collaboration revenues	182		294		606		294
Total revenue	15,395		7,406		41,904		7,406
Operating expenses
Cost of goods sold(1)	1,661		2,316		6,944		2,316
Selling, general and administrative(2)	18,845		18,383		63,117		22,739
Research and development	1,019		145		1,805		854
Royalty expense(3)	2,510		1,245		7,015		1,245
Amortization of intangible assets	1,053		679		3,127		679
Total operating expenses	25,088		22,768		82,008		27,833
Operating loss	(9,693)		(15,362)		(40,104)		(20,427)
Other (expense) income
Interest expense	(2,269)		(1,346)		(7,011)		(1,698)

Change in fair value of convertible debt	4,067		—		(9,270)		—
Interest income and other income	—		5		—		5
Total other (expense) income	1,798		(1,341)		(16,281)		(1,693)
Net loss before provision (benefit) for income taxes	(7,895)		(16,703)		(56,385)		(22,120)
Provision (benefit) for income taxes	—		(465)		—		(465)
Net loss	$	(7,895)	$	(16,238)	$	(56,385)	$	(21,655)

Other comprehensive income:
Change in fair value of convertible debt due to instrument credit risk	1,240		—		3,318		—
Comprehensive loss	$	(6,655)	$	(16,238)	$	(53,067)	$	(21,655)

Net loss per common share - basic and diluted	$	(2.04)	$	(5.30)	$	(15.78)	$	(14.92)

Weighted average number of common shares outstanding - basic and diluted	3,862,896		3,061,735		3,573,387		1,451,152


	Preferred A Shares	Preferred A Shares Par		Preferred C Shares	Preferred C Shares Par		Common Shares	Common Shares Par		Additional Paid-in Capital		Accumulated Other Comprehensive Income (As Restated)		Accumulated Deficit (As Restated)		Total Stockholders’ Equity (Deficit) (As Restated)
Balance, December 31, 2025	56,418	$	—	2,600	$	—	3,234,423	$	—	$	103,675	$	—	$	(64,794)	$	38,881
Stock-based compensation	—	—		—	—		—	—		1,908		—		—		1,908
Shares issued upon vesting of restricted stock units	—	—		—	—		15,488	—		—		—		—		—





Warrants issued for venture loan and security agreement	—	—		—	—		—	—		1,362		—		—		1,362


Conversion of Preferred A Shares	(1,200)	—		—	—		120,000	—		—		—		—		—

Change in fair value of convertible debt due to instrument credit risk	—	—		—	—		—	—		—		2,188		—		2,188
Net loss	—	—		—	—		—	—		—		—		(25,073)		(25,073)
Balance, March 31, 2026	55,218	$	—	2,600	$	—	3,369,911	$	—	$	106,945	$	2,188	$	(89,867)	$	19,266
Stock-based compensation	—	—		—	—		—	—		2,760		$	—	—		2,760
Shares issued upon vesting of restricted stock units	—	—		—	—		35,007	—		—		—		—		—
Exercise of stock options	—	—		—	—		4,706	—		—		—		—		—
Conversion of Preferred A Shares	(3,090)	—		—	—		309,000	—		—		—		—		—
Change in fair value of convertible debt due to instrument credit risk	—	—		—	—		—	—		—		(110)		—		(110)
Net loss	—	—		—	—		—	—		—		—		(23,417)		(23,417)
Balance, June 30, 2026	52,128	$	—	2,600	$	—	3,718,624	$	—	$	109,705	$	2,078	$	(113,284)	$	(1,501)
Stock-based compensation	—	—		—	—		—	—		1,943		—		—		1,943
Shares issued upon vesting of restricted stock units	—	—		—	—		109,514	—		—		—		—		—
Exercise of stock options	—	—		—	—		1,979	—		27		—		—		27
Conversion of Preferred A Shares	(649)	—		—	—		64,900	—		—		—		—		—
Change in fair value of convertible debt due to instrument credit risk	—	—		—	—		—	—		—		1,240		—		1,240
Net loss	—	—		—	—		—	—		—		—		(7,895)		(7,895)
Balance, September 30, 2026	51,479	$	—	2,600	$	—	3,895,017	$	—	$	111,675	$	3,318	$	(121,179)	$	(6,186)


	Nine Months Ended September 30,
	2026		2025
Cash flow from operating activities:
Net loss	$	(56,385)	$	(21,655)
Adjustments to reconcile net loss to net cash used in operating activities
Accretion of interest for royalty obligations	2,835		1,316
Change in fair value of convertible notes	9,270		—
Depreciation of property and equipment	1,030		389
Amortization of intangible assets	3,127		679

Amortization of debt discount	684		259
Lease amortization expense	204		74
Stock-based compensation	6,611		3,662
Non-cash interest expense	1,187		—
Inventory write-off	925		792
Deferred income tax	—		(465)

Changes in operating assets and liabilities:
Accounts receivable	(4,555)		(7,940)
Inventory	1,577		1,385
Prepaid expenses and other current assets	(64)		(1,411)
Operating lease right-of-use assets	317		243
Accounts payable	631		4,031
Accrued expenses	7,753		2,689

Operating lease liabilities	(495)		(189)
Deferred revenue	(606)		(294)
Other assets and liabilities	—		97
Net cash used in operating activities	(25,954)		(16,338)

Cash flow from investing activities:
Purchases of property and equipment	(256)		—


Acquisition of LNHC, Inc.	—		2,761
Net cash (used in) provided by investing activities	(256)		2,761

Cash flow from financing activities:
Proceeds from venture loan and security agreement, net of issuance costs	29,337		—
Proceeds from PIPE, net	—		27,384
Proceeds from stock option exercises	27		85

Proceeds from loan payable, net of debt discount	—		693
Payment of venture loan and security agreement issuance costs	(1,814)		—
Payment of loan payable, net of debt discount	—		(845)

Payment of contingent consideration	(1,200)		—



Net cash provided by financing activities	26,350		27,317
Net increase in cash and cash equivalents and restricted cash	140		13,740
Cash, cash equivalents and restricted cash as of beginning of period	18,023		513
Cash, cash equivalents and restricted cash as of end of period	$	18,163	$	14,253


Reconciliation to condensed consolidated balance sheets:
Cash and cash equivalents	$	17,690	$	14,203
Restricted cash	473		50
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	18,163	$	14,253


Supplemental cash flow information:
Cash paid for income taxes	$	—	$	—
Cash paid for interest expense	$	2,295	$	19

Supplemental non-cash investing and financing activities:
Purchases of property and equipment with accounts payable and accrued expenses	$	100	$	—
Warrants issued for venture loan and security agreement	$	1,362	$	—
Payment-in-kind on convertible debt	$	1,017	$	—
Unpaid fees in connection with PIPE	$	281
Offering costs recorded to debt discount	$	—	$	39




PIPE proceeds allocated to accounts payable	$	—	$	1,776
PIPE proceeds allocated to debt payable	$	—	$	20,340
PIPE proceeds allocated to fees	$	—	$	600
Royalty agreement liability reclassified from additional paid in capital	$	—	$	10,821

Shares issued for payment of accounts payable or for services	$	—	$	50
Conversion of notes to common stock	$	—	$	737


	Shares of Series A Preferred Stock Issued	Allocated Gross Proceeds		Notes Settlement		Payables Settlement and Expenses		Net Proceeds
Beginning Balance as of July 1, 2025	—	$	—	$	—	$	—	$	—
Series A Preferred Stock Issued - Merger	31,278	—		—		—		—
Series A Preferred Stock Issued - PIPE Financing	50,100	50,100		(20,340)		(2,376)		27,384
Series A Preferred Stock Converted to Common Stock	(23,810)	—		—		—		—
Ending Balance as of July 1, 2025	57,568	$	50,100	$	(20,340)	$	(2,376)	$	27,384


	September 30, 2026		December 31, 2025
Customer A	32	%	38	%
Customer B	25	%	31	%
Customer C	29	%	21	%
Total percentage of gross accounts receivable	86	%	90	%


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Customer A	34	%	28	%	34	%	27	%
Customer B	24	%	33	%	24	%	33	%
Customer C	25	%	31	%	27	%	31	%
Total percentage of gross product revenue	83	%	92	%	85	%	91	%


	September 30, 2026	September 30, 2025
Convertible notes payable	639,653	—
Series A Preferred Stock	5,147,900	5,756,800
Series C Preferred Stock	34,667	34,667
Warrants to purchase Common Stock	70,988	5,500
Stock options	1,505,752	1,529,401
Nonvested restricted stock units	310,570	471,486


Shares of Series A Preferred Stock issued in the Merger Agreement (1)	31,278
Series A Preferred Stock per share price (2)	$	1,260
Total merger consideration	$	39,410


	September 30, 2026		December 31, 2025
Raw materials	$	720	$	436
Work-in-process	13,426		16,556
Finished goods	7,325		6,582
Total inventory	$	21,471	$	23,574


	September 30, 2026		December 31, 2025
Prescription Drug User Fee Act (PDUFA) fees	$	111	$	442

Drug product manufacturing subcontractor	351		—
Insurance	936		766
Deposits for meetings and conferences	231		80
Commercial data platforms	580		364
Patient assistance platforms	—		75
Financial reporting platforms	95		98
Deferred offering costs	—		711
Other	715		419
Total prepaid expenses and other current assets	$	3,019	$	2,955


	September 30, 2026		December 31, 2025
Manufacturing and laboratory equipment	$	1,852	$	1,778
Software	1,083		1,083
Furniture and fixtures	69		70

Computer equipment	255		111
Leasehold improvements	6,039		5,967
Construction-in-progress	1,575		1,509
Property and equipment, cost	10,873		10,518
Less: Accumulated depreciation and amortization	(2,361)		(932)
Total property and equipment, net	$	8,512	$	9,586


	September 30, 2026		December 31, 2025
Indefinite-lived intangible assets
Goodwill	$	24,681	$	24,681
Definite-lived intangible assets
Developed technology	32,200		32,200
Amended Sato license	715		715
Xepi	6,080		6,080
Xeglyze	1,817		1,817
Website development	214		214
Less: accumulated amortization	(4,682)		(1,556)
Total definite-lived intangible assets	$	36,344	$	39,470


	September 30, 2026		December 31, 2025
Compensation	$	3,426	$	3,475
Drug product manufacturing subcontractor	330		292
Commercial, marketing and sales	251		818
Insurance	—		265
Accrued interest	—		234
Royalties payable	539		485
Accrued gross-to-net adjustments	2,876		1,778
Accrued professional fees	1,603		234
Other	118		449
Total accrued expenses	$	9,143	$	8,030


	September 30, 2026		December 31, 2025
Reedy Creek Purchase Agreement	$	819	$	1,963
Total other liabilities	$	819	$	1,963

Zelsuvmi Royalty Agreement	$	901	$	1,540

Xepi Royalty Agreement	367		226
Sato Payments	97		113
Total other liabilities - related party	$	1,365	$	1,879

Reedy Creek Purchase Agreement	$	21,447	$	18,908
Total other long-term liabilities	$	21,447	$	18,908

Zelsuvmi Royalty Agreement	$	9,988	$	8,233

Xepi Royalty Agreement	2,044		1,928
Sato Payments	1,073		981
Accrued interest on Convertible Notes	404		—
Total other long-term liabilities - related party	$	13,509	$	11,142


Consideration Type	Counterparty	Contractual Amount			Allocated Purchase Price
Upfront Payment - Asset Purchase Agreement	Biofrontera	$	3,000		$	3,000
Contingent Consideration - Achievement of Commercial Quantities	Biofrontera	1,000			1,000
Contingent Consideration - Achievement of Sales Based Milestones	Biofrontera	6,000			—
Contingent Consideration - Acceptance of Initial API Purchase	Ferrer	1,200			1,200
Xepi Transaction - Transaction Expenses	Various	880			880
		$	12,080		$	6,080

Royalty Payments on Net Sales of Xepi	Ferrer	7		%	—		%


	Carrying Value		Accumulated Amortization		Net Book Value		Remaining Useful Life (Years)
Definite-lived intangible assets
Developed technology	$	32,200	$	(3,305)	$	28,895	10.92
Amended Sato license	715		(285)		430		1.50
Xepi	6,080		(876)		5,204		5.33
Xeglyze	1,817		(155)		1,662		8.22
Website development	214		(61)		153		2.36
Total definite-lived intangible assets	$	41,026	$	(4,682)	$	36,344
Indefinite-lived intangible assets
Goodwill	$	24,681			$	24,681


	Allocated Fair Value		Lender Fees		Third Party Fees		Total
Term Loans	$	28,638	$	663	$	1,814	$	26,161
Initial Horizon Warrants	1,362		—		—		1,362
	$	30,000	$	663	$	1,814	$	27,523


Valuation methodology	Black-Scholes
Expected volatility	85.67		%
Risk-free interest rate	4.19		%
Expected term (in years)	10
Expected dividend yield	—		%
Fair value per warrant	$	21.79


	September 30, 2026		January 12, 2026
Term Loan	$	30,000	$	30,000
Final Payment	1,500		1,500
Venture Loan and Security Agreement, gross	$	31,500	$	31,500
Debt Discount	(4,655)		(5,339)
Venture Loan and Security Agreement, net	$	26,845	$	26,161


	Term Loan
2026 (October 1 - December 31)	$	—
2027	—
2028	—
2029	12,500
2030	15,000
2031 and thereafter	4,000
Total	$	31,500


Fair value of Convertible Notes at December 31, 2025	$	31,441
Payment-in-kind on convertible debt	1,017

Change in fair value recognized in other comprehensive income	(3,318)
Change in fair value recognized in net loss	9,270
Fair value of Convertible Notes at September 30, 2026	$	38,410


	September 30, 2026			December 31, 2025



Valuation model utilized	Monte-Carlo			Scenario-Based

Valuation methodology - Principal	Discounted Cash Flows			Discounted Cash Flows
Expected term (in years)	4.58			1.85
PIK period (years)	4.58			0.85
Discount rate	18.29		%	5.94		%

Valuation methodology - Convertible feature	Black-Scholes			Black-Scholes
Conversion price	$	29.73		$	29.73
Expected volatility	110.00		%	152.00		%
Risk-free interest rate	USD Yield Curve			3.41		%
Expected term (in years)	4.58			1.85
Expected dividend yield	—		%	—		%


Convertible Notes credit spread as of June 30, 2026	11.20	%
Estimated change in credit spread between June 30, 2026 and September 30, 2026	2.08	%
Convertible Notes credit spread as of September 30, 2026	13.28	%
Term-matched risk-free rate	5.01	%
	18.29	%


	Convertible Notes
2026 (October 1 - December 31)	$	—
2027	—
2028	—
2029	—
2030	—
2031 and thereafter	38,410
Total	$	38,410


	September 30, 2026		December 31, 2025
Fair value of Convertible Notes	$	38,410	$	31,441
Less: principal balance of Convertible Notes	19,017		18,000
Fair value excess over principal	$	19,393	$	13,441


	Securities Outstanding		Conversion Ratio / Exercise Price		Common Shares Issuable
Convertible notes payable	—	(1)	$	29.73	639,653
Underwriter warrants to purchase Common Stock	5,500		$	33.31	5,500
Initial Horizon Warrants to purchase Common Stock	65,488		$	27.49	65,488


	Shares Outstanding	Conversion Ratio		Common Shares Issuable
Common Stock	3,895,017	—		3,895,017
Series A Preferred Stock	51,479	100.00	(1)	5,147,900
Series C Preferred Stock	2,600	—	(2)	34,667


	Awards Outstanding	Exercise Price			Common Shares Issuable
Stock options	1,505,752	$	15.80	(1)	1,505,752
Nonvested restricted stock units	310,570	—			310,570
Nonvested performance stock units	174,250	—			174,250


	As of September 30, 2026
	Unamortized Expense		Remaining Life
Stock options	$	8,765	1.82 years
Restricted stock units	$	3,954	1.83 years


Stock Options	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value (thousands)
Outstanding December 31, 2025	1,506,551	$	15.96		$	25,861
Granted	120,301	26.05
Expired	(110,121)	29.49
Exercised	(10,979)	13.20
Outstanding September 30, 2026	1,505,752	$	15.80	8.22 years	$	10,401
Exercisable September 30, 2026	596,327	$	16.88	7.25 years	$	4,415
Vested and expected to vest September 30, 2026	1,505,752	$	15.80	8.22 years	$	10,401


	For The Nine Months Ended September 30,
	2026		2025
Expected volatility	88.06	%	86.11	%
Risk-free interest rate	4.13	%	4.28	%
Expected term (in years)	6.00		5.94
Expected dividend yield	—	%	—	%


Non-vested RSUs	RSUs	Weighted- Average Grant Date Fair Value
Non-vested at December 31, 2025	464,921	$	13.98
Granted	39,582	26.06
Vested	(160,009)	13.38
Forfeited	(33,924)	16.54
Non-vested at September 30, 2026	310,570	$	15.55