Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 295

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 295
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 of gain.

We
have never declared or paid cash dividends on our capital stock. We currently intend to retain all of our future earnings, if
any, to finance the growth and development of our business. In addition, the terms of any future debt agreements may preclude
us from paying dividends. As a result, capital appreciation, if any, of our Common Stock will be your sole source of gain for
the foreseeable future.

Risks
Related to our CEF Purchase Agreement

It
is not possible to predict the actual number of Purchase Shares we will sell under the CEF Purchase Agreement, or the actual gross
proceeds resulting from those sales. We may not have access to the full amount available under the CEF Purchase Agreement with
Tikkun.

On
July 26, 2024, we entered into the CEF Purchase Agreement (the “CEF Purchase Agreement”) with Tikkun Capital LLC (“Tikkun”),
pursuant to which Tikkun committed to purchase up to $30.0 million in shares of our Common Stock, subject to certain limitations
and conditions set forth in the CEF Purchase Agreement.

The
shares of Common Stock that may be issued under the CEF Purchase Agreement (the “Purchase Shares”) may be sold by
us to Tikkun at our discretion from time to time until July 26, 2026, commencing after the satisfaction of certain conditions
set forth in the CEF Purchase Agreement, including a registration statement covering the resale of shares of Common Stock that
may be issued under the CEF Purchase Agreement is declared effective by the SEC, a final prospectus in connection therewith is
filed, and the other conditions set forth in the CEF Purchase Agreement are satisfied. We generally have the right to control
the timing and amount of any sales of Purchase Shares to Tikkun under the CEF Purchase Agreement. Sales of Purchase Shares to
Tikkun under the CEF Purchase Agreement will depend upon market conditions and other factors to be determined by us. We may ultimately
decide to sell to Tikkun all or a portion of the Purchase Shares that may be available pursuant to the CEF Purchase Agreement.

Because
the purchase price per share to be paid by Tikkun for the Purchase Shares that we may elect to sell to Tikkun under the CEF Purchase
Agreement will fluctuate based on the market prices of our Common Stock during the applicable volume weighted average price purchase
valuation period for each purchase,