PTHS

Pelthos is a post-merger micro-cap (just 3.36M shares, $93M cap) that only became a revenue company in mid-2025, when ZELSUVMI — its lead molluscum-contagiosum product — launched in July. FY2025 captured roughly six months of selling: $16.8M revenue (XBRL) / $16.2M net product revenue per MD&A, against $49.2M of total operating expenses. The result is brutal: a -$43.3M net loss, -$32.4M operating loss, -257.9% net margin and -$23.04 diluted EPS. This is not a profitability problem at the margin — the cost base is roughly 3x revenue, and FY2025 was the company's worst loss year by far in a multi-year string of losses (-$2.5M → -$7.4M → -$8.0M → -$43.3M).

The balance sheet is the disqualifier. Operating cash flow was -$22.6M while cash stood at only $18.0M at year-end — well under one year of burn on its own. Management bridges that gap with debt, not a cushion: a November 2025 convertible note plus a January 2026 $50M senior secured Venture Loan from Horizon ($30M drawn, $20M milestone-gated). That props up the 'sufficient capital for twelve months' claim but loads a fragile, deficit-ridden business (retained earnings -$64.8M, liabilities/equity already 2.35x before the new draw fully shows) with secured leverage ahead of equity. Tellingly, the auditors removed the 2024 going-concern qualification but management still warns in plain language that 'if we are unable to maintain sustainable revenues, we may be unable to continue as a going concern.'