Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 55

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 trial parameters or tax credits available to the Company will remain
as they are, which could lead to changes in our research and development expenditures. Cash used to fund operating expenses is
impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued
expenses and prepaid expenses.

34

We
expect to continue to incur significant and increasing expenses and operating losses in connection with our ongoing research and
development activities. As a result, we expect to continue to incur operating losses and negative operating cash flows for the
foreseeable future.

As
a result, we will need to raise additional funding through strategic relationships, public or private equity or debt financings,
credit facilities, grants or other arrangements or some combination thereof. If such funding is not available or not available
on terms acceptable to us, our current development plan and plans for expansion of our general and administrative infrastructure
may be curtailed. If we raise additional funds through the issuance of preferred stock, convertible debt securities or other debt
financing, these securities or other debt could contain covenants that restrict our operations. Any other third-party funding
arrangement could require us to relinquish valuable rights.

The
source, timing and availability of any future financing will depend principally upon market conditions. Funding may not be available
when needed, at all, or on terms acceptable to us. Lack of necessary funds may require us to, among other things, delay, scale
back or eliminate expenses including some or all of our planned development. There is substantial doubt about our ability to continue
as a going concern.

Cash
Flows

The
following table summarizes our cash flows for the three months ended March 31, 2025 and 2024:

    Three
    Months Ended March 31, 2025 and 2024

    2025

    2024

    $ Change

    %
    Change

    Net
    cash used in operating activities
     
    $
    (632,126
    )
     
    $
    (1,991,893
    )
     
    $
    (1,359,767
    )

    (68
    )%

    Net
    cash provided by financing activities

    250,000

    5,665,731

    5,415,731

    (96
    )%

    Net
    change in cash
     
    $
    (382,126
    )