Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 51

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 51
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 with the audit, as applicable, of its consolidated financial statements for the years ended December 31, 2024 and 2023, Channel identified material weaknesses in its internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of its annual or interim consolidated financial statements will not be prevented or detected on a timely basis. The material weaknesses in Channel arose from inadequate segregation of duties, ineffective information technology controls and lack of certain financial reporting and transaction processing controls. If Channel is unable to remedy its material weaknesses, or if it generally fails to establish and maintain effective internal controls appropriate for a public company, it may be unable to produce timely and accurate consolidated financial statements, and it may conclude that its internal control over financial reporting is not effective, which could adversely impact its investors’ confidence and its stock price.

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TABLE OF CONTENTS

Channel will need to raise additional funding to receive approval for CC8464, CT2000, CT3000 or any other future compound. Such funding may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force Channel to delay, limit, sell or terminate certain of its product development efforts or other operations. To complete the process of obtaining regulatory approval for CC8464, CT2000 and CT3000 and to build the sales, marketing, licensing and distribution infrastructure that Channel believes will be necessary to commercialize CC8464, CT2000 and CT3000, if approved, it will require substantial additional funding. In addition, if Channel obtains marketing approval for CC8464, CT2000 and CT3000, it expects to incur significant expenses related to product sales, medical affairs, marketing, manufacturing and distribution. Channel’s future capital requirements will depend on many factors, including:

| • | the progress, timing, results and costs of its dose escalation and phase 2 clinical trial for CC8464; |

| • | the progress, timing, results and costs of its human POC trials for CT2000; |

| • | the progress, timing, results and costs of its GMP manufacturing and human POC for CT3000; |

| • | the progress, timing and costs of manufacturing clinical trial for its planned pivotal clinical trials; |

| • | the potential development and the filing on an Investigation New Drug (“IND”) application for other future compounds; |

| • | the initiation, scope, progress