Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 85

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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, each of which presents growth opportunities for our business. These factors also pose
important challenges that the Company must successfully address in order to sustain our growth and improve our results of operations.
Our ability to successfully address these challenges is subject to various risks and uncertainties.

●The
                                         Company must effectively implement and maintain sales, marketing and distribution capabilities
                                         for our products to successfully commercialize and generate revenues from our products.

●Our
                                         products must achieve a broad degree of physician and patient adoption and use necessary
                                         for commercial success. The commercial success of our approved products depends significantly
                                         on the broad adoption and use of such products by physicians and patients for approved
                                         indications.

50

●Our
                                         product revenues will be dependent on sales to a few significant wholesale customers
                                         and the loss of, or substantial decline in, sales to one of these wholesale customers
                                         could have a material adverse effect on our expected future revenues and profitability.

●Delays
                                         or disruptions in our supply chain and the manufacturing of our product could adversely
                                         affect our sales and marketing efforts.

●Unexpected
                                         results in the analysis of raw materials, the API or drug product or problems with the
                                         execution of or quality systems supporting the analytical testing work, whether conducted
                                         internally or by third-party service providers, could adversely affect our commercialization
                                         activities.

Results
of Operations

On
July 1, 2025, Channel, Merger Sub (a wholly owned subsidiary of Channel), LNHC, and solely for the purposes of Article III within
the Merger Agreement, Ligand consummated the Merger, pursuant to which, (i) Merger Sub merged with and into LNHC, with LNHC as
the surviving company in the Merger and, after giving effect to such Merger, continuing as a wholly-owned subsidiary of Channel
and (ii) Channel changed its name to Pelthos Therapeutics Inc.

The
post-acquisition operating results of LNHC are reflected within the Company’s condensed consolidated statement of operations
and comprehensive loss for the three and nine months ended September 30, 2025, specifically from July 1, 2025 through September
30, 2025.

Comparison
of the Three and Nine Months ended September 30, 2025 and 2024

The
following table sets forth our results of operations for the three and nine months ended September 30, 2025 and 2024 (in thousands):

    For
    the Three