Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 84

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 had a net loss of approximately $16.2
million and $21.7 million, respectively. As of September 30, 2025, the Company
has cash of approximately $14.2 million and working capital of $25.0 million.

The
Company expects to continue to incur losses for the foreseeable future, as it continues to invest in commercialization activities
for ZELSUVMI, add operational, financial and management information systems and personnel to support Company operations and incur
additional costs associated with operating as a public company. The Company's ability to continue its operations is dependent
upon its ability to obtain additional capital in the future and generate cash flows from operations.

Based
on current projections, management believes there is substantial doubt about its ability to continue to operate as a going concern
and fund its operations through at least the next twelve months following the issuance of these condensed consolidated financial
statements. While the Company completed an equity offering in July 2025, it expects that costs associated with the commercial
launch of ZELSUVMI, costs related to potential clinical trials associated with the existing
pain programs, and other activities will require the Company to raise additional
funds. Our inability to obtain significant additional funding on acceptable terms could have a material adverse effect
on our business and cause us to alter or reduce our planned operating activities. We may pursue additional capital through equity
or debt financings, or from other sources, including partnerships, collaborations, licensing, or other strategic relationships.
However, there is no assurance that the Company will be able to raise such additional funds on acceptable terms, if at all. If
the Company raises additional funds by issuing securities, existing stockholders may be diluted.

The
condensed consolidated financial statements included in this Report do not include any adjustments to reflect the possible future
effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from
the matters discussed herein. While the Company believes in the viability of the Company’s strategy to generate sufficient
revenue, control costs, and raise additional funds, when necessary, there can be no assurances to that effect. The Company’s
ability to continue as a going concern is dependent upon the ability to implement the business plan, generate sufficient revenues,
raise capital, and to control operating expenses.

Key
Factors Affecting Our Results of Operations and Future Performance

The
Company believes that its financial performance has been, and in the foreseeable future will continue to be, primarily driven
by multiple factors as described below