Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 294

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 294
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 the JOBS Act. If some investors find our Common Stock less attractive as a result, there
may be a less active trading market for our Common Stock and our stock price may decline or become more volatile.

We
have taken advantage of reduced reporting burdens in this Report. We cannot predict whether investors will find our Common Stock
less attractive if we rely on certain or all of these exemptions. If some investors find our Common Stock less attractive as a
result, there may be a less active trading market for our Common Stock and our stock price may be more volatile.

In
addition, the JOBS Act provides that an emerging growth company may take advantage of an extended transition period for complying
with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards
until those standards would otherwise apply to private companies. We have irrevocably elected not to avail ourselves of this exemption
from new or revised accounting standards and, therefore, we will be subject to the same new or revised accounting standards as
other public companies that are not emerging growth companies.

61 

The
requirements of being a public company may strain our resources and divert management’s attention.

As
a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the
Dodd-Frank Wall Street Reform and Consumer Protection Act and other applicable securities rules and regulations. The Exchange
Act requires, among other things, that we file annual and current reports with the SEC with respect to our business and operating
results. Compliance with these rules and regulations increases our legal and financial compliance costs, makes some activities
more difficult, time-consuming, or costly, and increases demand on our systems and resources.

As
a result of disclosure of information in this Annual Report on Form 10-K and in filings required of a public company, our
business and financial condition is more visible, which we believe may result in threatened or actual litigation, including by
competitors and other third parties. If such claims are successful, our business and operating results could be harmed, and even
if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to
resolve them, could divert resources of our management and harm our business and operating results.

Because
we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will
be your sole source