Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 2197

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 11
Chunk 2197
---
. Kopfli, breach of fiduciary duty by Mr. Kopfli, as well as breach of contract against Chromocell
Holdings in connection with the Contribution Agreement between the Company and Chromocell Holdings. The Company also asserted
a “faithless servant” claim against Mr. Kopfli, seeking a ruling that Mr. Kopfli was not entitled to compensation
from the Company. The Company sought monetary damages against Mr. Kopfli and Chromocell Holdings in the New York Action, plus
disgorgement of all compensation previously paid or accrued to Mr. Kopfli by the Company.

By
Order dated October 3, 2024, the court in the New York Action awarded the Company a default judgment against Mr. Kopfli and Chromocell
Holdings on all claims, and ordered an assessment of damages against Mr. Kopfli and Chromocell Holdings (currently scheduled to
be held in May 2025). As of December 31, 2024, the Company has removed the accrual of $363,091 in compensation expenses and recorded
a gain on default judgement in the same amount.

Parexel
Claim

On
July 31, 2024, the Company received a demand letter from an attorney representing Parexel International (IRL) Limited (“Parexel”).
 The letter, which was addressed to both the Company and Chromocell Holdings, purports to be a notice of default of
a note (the “Promissory Note”) between Chromocell Holdings and Parexel and seeks the payment of allegedly
unpaid principal in the amount of $682,551 plus interest exceeding $177,000.  The Company denies that it is liable for any
of the amounts sought by Parexel; the Company is not a party to the Promissory Note and does not believe it is
liable for any amounts allegedly due thereunder.  The Company intends to defend itself vigorously in the matter.

NOTE
8 – INCOME TAX

The
Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred
tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the consolidated
financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable