Pelthos restates Q1 results after ASC 820 error lifts convertible debt fair value by $15.8 million
PTHS•Pelthos flags Q1 non-reliance and restates results
Pelthos flagged non-reliance on its Q1 2026 Form 10-Q due to a misapplication of ASC 820 in Level 3 fair values.
The restatement will lift the fair value of convertible debt by $15.8 million, raising liabilities and widening accumulated deficit by $14.8 million.
The non-cash expense tied to the convertible debt fair value change will increase by $14.8 million, pressuring reported net loss.
The audit committee identified a material weakness in controls over valuation and review of Level 3 measurements tied to the convertible debt.
Pelthos said there is no expected impact on liquidity, cash, revenue, operating expenses, or operating loss, and that the correction sits in other income (expense).
