Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 121

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 121
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 operations, injury to LNHC’s service providers and others and environmental damage resulting in costly clean-up and liabilities under applicable laws and regulations governing the use, storage, handling and disposal of these materials and specified waste products. Although LNHC believes that the manufacturing controls and safety procedures utilized by LNHC and its third-party suppliers and manufacturers for handling, transporting and disposing of these materials generally comply with the standards prescribed by these laws and regulations, LNHC cannot guarantee that this is the case or eliminate the risk (i) that the laws and regulations will not restrict LNHC’s or its third-party suppliers’ or manufacturers’ ability to use, manufacture, store, transport, handle or dispose of such materials or (ii) of accidental contamination or injury from these hazardous materials and processes. If these risks were to materialize, LNHC could experience an interruption of its business operations and LNHC may be held liable for any resulting damages and such liability could exceed LNHC’s financial resources.**

**LNHC may be adversely affected by the effects of inflation or trade tariffs.**

LNHC has been impacted, and may continue to be impacted, by inflation and/or trade tariffs which have the potential to adversely affect LNHC’s liquidity, business, financial condition and results of operations by increasing LNHC’s overall cost structure. The existence of inflation and the recent uncertainty in the levying of certain trade tariffs by the U.S. government, has resulted in, and may continue to result in, higher interest rates and capital costs,

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supply shortages, increased costs of labor, components, manufacturing and shipping, as well as weakening exchange rates and other similar effects. As a result of inflation and tariffs, LNHC has experienced and may continue to experience cost increases. Although LNHC may take measures to mitigate the effects of inflation and tariffs, if these measures are not effective and if the inflationary and tariff pressure is sustained or increased, LNHC’s business, financial condition, results of operations and liquidity could be negatively affected. Even if such measures are effective, there could be a difference between the timing of when these beneficial actions impact LNHC’s results of operations and when the cost of inflation and/or tariffs are incurred. Risks Related to the Development of LNHC’s Future Product Candidates If LNHC is unable to successfully develop, receive regulatory approval for and commercialize any future product candidate it may potentially acquire, or experiences significant delays in doing so, its business will be harmed. LNHC currently licenses only one product that is