Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 287

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 287
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 have a negative effect on the price of our Common Stock and would impair your ability to sell or purchase our Common
Stock when you wish to do so. In the event of a delisting, we would take actions to restore our compliance with NYSE American’s
listing requirements, but we can provide no assurance that any such action taken by us would allow our Common Stock to become
listed again, stabilize the market price or improve the liquidity of our Common Stock, prevent our Common Stock from dropping
below NYSE American’s minimum bid price requirement or prevent future non-compliance with such listing requirements.

If
we cannot maintain the listing of our Common Stock for trading on NYSE American, we could face significant material adverse consequences,
including:

    ●
    a limited availability
    of market quotations for our Common Stock;

    ●
    reduced liquidity
    for our Common Stock;

    ●
    a determination
    that our Common Stock is a “penny stock” which will require brokers trading in our Common Stock to adhere to more
    stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our Common
    Stock;

    ●
    a limited amount
    of news and analyst coverage; and

57 

    ●
    a decreased ability
    to issue additional Common Stock or obtain additional financing in the future.

We
could issue “blank check” preferred stock without stockholder approval with the effect of diluting then current stockholder
interests and impairing their voting rights; and provisions in our charter documents could discourage a takeover that stockholders
may consider favorable.

Our
articles of incorporation authorizes the issuance of up to 20,000,000 shares of “blank check” preferred stock with
designations, rights and preferences as may be determined from time to time by our Board. Our Board is empowered, without stockholder
approval, to issue a series of preferred stock with dividend, liquidation, conversion, voting or other rights which could dilute
the interest of, or impair the voting power of, our common stockholders. The issuance of a series of preferred stock could be
used as a method of discouraging, delaying, or preventing a change in control of the Company. For example, it would be possible
for our Board to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt
to change control of the Company.

Our
Series C Convertible Redeemable Preferred Stock, par value of