Pelthos Therapeutics Reports Increased Losses and Financial Strain in Latest 10-Q Filing

Pelthos Therapeutics Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of approximately $5.4 million, compared to a loss of $4.3 million for the same period in 2024, marking a 25% increase in losses year-over-year. Total operating expenses surged to $5.1 million, up 37% from $3.7 million in the prior year, driven primarily by increased professional fees and research and development costs. The company’s cash reserves dwindled to $59,172 from $513,443 at the end of the previous fiscal year, reflecting a critical liquidity position.

The filing also highlighted a substantial increase in liabilities, which rose to $7.3 million from $4.1 million at the end of 2024. This increase was largely attributed to a rise in accounts payable and accrued expenses, which jumped to $4.9 million from $1.9 million. The company’s accumulated deficit reached $26.9 million, up from $21.5 million at the end of the previous year, indicating ongoing financial strain as it continues to seek funding for its operations and clinical trials.

Strategically, Pelthos underwent a significant merger with LNHC, which was finalized on July 1, 2025. This merger included a $50.1 million equity raise, with Ligand Pharmaceuticals investing $18 million, and is expected to facilitate the commercial launch of Zelsuvmi, an FDA-approved treatment for molluscum contagiosum. The merger also involved a 10-for-1 reverse stock split, with the company’s common stock now trading under the ticker symbol “PTHS” on the NYSE American. The merger is seen as a pivotal move to enhance the company’s market position and operational capabilities.

Operationally, Pelthos is focused on developing therapeutics targeting the sodium ion-channel NaV1.7, which is implicated in pain perception. The company is advancing several clinical programs, including CT2000 for eye pain and CT3000 for postoperative pain management. However, the company has acknowledged the need for additional funding to support these initiatives, particularly in light of the costs associated with the commercial launch of Zelsuvmi and ongoing clinical trials.

Looking ahead, Pelthos management expressed concerns about the company’s ability to continue as a going concern without securing further financing. The company plans to explore various funding avenues, including potential equity or debt offerings, but acknowledges the uncertainty surrounding market conditions and investor interest. The management's outlook remains cautious, emphasizing the need for strategic financial planning to navigate the challenges ahead.