Pelthos Therapeutics reports $7.1 million in Q3 revenue and plans for aggressive sales force expansion to capitalize on strong demand for Zelsudemi.

You. Greetings and welcome to The Peltos Therapeutics Third Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Mike Moyer. Please go ahead.

Good morning everyone and welcome TO Peltos Therapeutics Third Quarter 2025 Financial Results Conference Call. Peltos issued a press release today announcing its financial results for the three and nine months ended September 30, 2025. A copy can be found in the investor relations tab. Investor Relations tab on the corporate website@www.pelthos.com. before we begin, I'd like to remind you that during today's call, statements about the Company's future expectations, plans and prospects are forward looking statements. These forward looking statements are based on management's current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from our current expectations expressed or implied by the forward looking Statements. Any such forward looking statements may represent management's estimates and as of the date of this conference call. While the Company may elect to update such forward looking statements at some point in the future, it disclaims any obligations to do so even if subsequent events cause its views to change. As a reminder, this conference call is being recorded and will remain available for 90 days. I'd now like to turn the call over to Scott Plesha, Chief Executive Officer. Scott, you may now begin. Thank you Mike Good morning and welcome everyone to Today's Call. We're delighted to be with you today and share with you our third quarter operating results and highlights. Joining me today are Frank Nettle, our Chief financial officer, and Cy Rangero, Peltos Therapeutics chief commercial officer to start the third quarter of 2025 marked a significant advancement in Peltos corporate development. In the beginning of the quarter we successfully closed both our acquisition of the Peltos business, at which time we commenced trading on the New York Stock exchange, and a $50 million pipe with ligand Pharmaceuticals, Merchants Unlimited and other investors to support the launch of zealsudeny. Shortly thereafter. That launch occurred with the introduction in mid July of Xalzudemi, the company's first commercial product. Xelsudemy is a novel topical nitric oxide releasing product indicated for the treatment of molluscum contagiosum or MC in patients 1 year of age and older for up to 12 weeks. Xelsudemy is an important advancement in the treatment of MC as it's the first and only FDA approved therapy that can be applied by parents, Patients or caregivers in the home are on the go. Additionally, we are pleased to follow up the launch of Zelsubme with The recently announced $18 million convertible notes financing and the acquisition of Zepi. This financing funded our acquisition of Zepi and will provide additional support the launch of zalsubmi. We entered into the convertible financing agreement with Ligand, Murchison and other investors, the same lead investors that invested our July pipe. Frank will provide more details on the convert, but I want to note that our investors continued support show their strong confidence in the successful launch and growth metrics of Xelsudemy and our strategy to build a portfolio of topical treatments for cutaneous infections. Zepi is a novel FDA approved topical treatment for Empetigo that addresses a critical unmet need in antibiotic resistant skin infections caused by staph and strep infections and most commonly affecting children. We believe that Zelsugme and Zepi are highly complementary products with the diseases they treat, mostly affecting children and they are treated by the same healthcare providers. Importantly, this allows us to leverage our commercial infrastructure including our sales force. We'll share more details on Zepi later, but for now our focus is on the continued strong growth of Zelsubme. Frank will provide a more detailed look at the quarter's reported financials. But before we get into further detail about MC and Zelsumi's commercial launch progress, I'd like to share a brief overview of our top line Results. As of September 30, 2025, we had $14.2 million in cash on the books and $8 million in accounts receivable on an operating basis. For the three months ended September 30, 202025 we generated $7.1 million in net product revenue driven by strong initial demand for Zels of ME and an operating loss of $15.4 million. Our GAAP net loss was 16.2 million representing $5.3 per basic and diluted common share on an as converted basis reflecting the conversion of our Series A and Series C shares. This is loss of $1.83 per share. In addition, Frank will break down the one time and non cash items as well as other financial metrics included herein. But importantly, we currently expect that with Zelsuvme's strong growth rate and a focus on responsible spending that we will achieve cash flow breakeven from operations before the end of 2026. Turning to the Disease state Molluscum contagiosum is a highly infectious condition caused by a pox virus that primarily affects children 1 years of age or older with ICD10 claims indicating that 75 to 80% of MC patients are 10 years of age or younger. Roughly 17 million people in the United States are affected by molluscum and on average there are 6 million new cases annually. The literature also reports that in a multi child household if one child contracts MC 41% of the time, the other child or children will as well. While the disease is self resolving, the meantime to resolution is approximately 13 months and can last up to five years. During that time children are often ostracized and be forced to miss school or sporting events and cover their lesions with bandages or clothing. This leads to considerable child and parental anxiety which is the primary driver for patients being seen by healthcare providers. Zelsuvme is a topical treatment that is applied once a day at home which represents an important shift in the treatment paradigm for MC due to the fact it is the only FDA approved molluscum treatment that can be administered at home or on the go by parents, caregivers and patients. Prior to the launch of Delsuomi, other topical treatments or destructive modalities would require patients to make multiple visits to a healthcare practitioner. These in office treatment alternatives include curettage, cryotherapy and blistering agents that can sometimes be uncomfortable and painful, especially in the sensitive areas of the body that MC often presents. In this current treatment landscape, our launch of Zelsubemi has gone very well and has exceeded our expectations in many key performance indicators. It's our continued vision that Xelsuvami will revolutionize the treatment of mc, become the first line treatment of choice resulting in it becoming the clear market leader for the treatment of mc. Based on my interaction with key opinion leaders and other practitioners, I believe this will be driven by physician and parent caregivers preference for safe and efficacious at home prescription based treatment solution. With our strong initial launch performance where the cost of the sales force was covered within nine weeks and now having an understanding of the uptake curve, we have made the strategic decision to expand our sales force. In our current sales force structure of 50 sales representatives, there are many large metropolitan areas in the country not covered. We believe that by adding 14 additional sales representatives in these markets we can further accelerate the growth of zelsu. We expect These incremental team members to be hired, fully trained and in the field by mid January. Finally, a note on manufacturing and our intellectual property portfolio. Unlike many smaller pharmaceutical companies, Peltos owns and operates a purpose built manufacturing facility for Xelsumi's active pharmaceutical ingredient known as API. Zelsumi is a nitric oxide releasing treatment based on the nitrosyl platform technology we license from Ligand and we are, we believe, the only company that has successfully reduced to practice the ability to reduce this gas to a topical gel. The know how and trade secrets associated with our manufacturing process complement our patent protection which currently runs to mid-2035. In addition, we have a patent term extension on file and may receive an extension of the patent life to Q3 2037. Based on our trade secrets and and patent protection, we have a broad IP moat around our technology which we believe provides us a lengthy Runway to build Xelsumi's revenue. In closing, we are very pleased with the receptivity to Zelsumi to date and the $7.1 million in net product revenue generated during Q3. TSAI and the Commercial team are doing an outstanding job of educating our customers on the benefits of Zalcudiny which has led to a high number of prescribers and a strong prescription growth of Zalcudeny. We remain fully committed to maintaining strict financial discipline and will continue to evaluate and optimize our commercial strategy as we want to seize every opportunity to deliver sustainable long term shareholder value for Pelto shareholders. We feel strongly about the launch in these early days and continue mapping our strategy for the growth of Xelsumi in 2026 and beyond and the introduction of sales of Zeppe commencing in late 2026. I'll now turn it over to Sy to provide more specifics on the results of the Xelsumi launch and key performance indicators.