Pelthos to restate first-quarter results after debt valuation error
Shares of Pelthos Therapeutics PTHS.A fell 1.8% to $28.41 in morning trade.
Pelthos said it has identified a material weakness in internal controls over convertible debt valuation and plans to amend its first-quarter report.
The company said it will restate its financial results for the first quarter after finding it incorrectly valued some of its convertible debt.
PTHS said the error involved assumptions used to value convertible debt issued under a January agreement, including extended repayment terms and a feature that can reset the conversion rate.
The restatement will increase the reported fair value of the convertible debt by $15.8 million and raise the company's accumulated deficit by $14.8 million, the company said.
As of last close, PTHS stock was down 12% year to date.
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