Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 302

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 302
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 seven individual consultants on a part-time basis. None of its employees is subject to a collective bargaining agreement or represented by a trade or labor union. Channel considers its relationship with its employees to be good.

Channel’s human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and integrating its existing and additional employees. The principal purposes of Channel’s equity incentive plans are to attract, retain and motivate selected employees, consultants and directors through the granting of stock-based compensation awards and cash-based performance bonus awards.

#### Legal Proceedings
From time to time, Channel may be involved in legal proceedings arising in the ordinary course of its business. Channel is not presently a party to any legal proceedings that, in the opinion of management, would have a material adverse effect on its business. Regardless of outcome, litigation can have an adverse impact on Channel due to defense and settlement costs, diversion of management resources, negative publicity and reputation harm, and other factors.

#### Demand Letter from Mr. Kopfli’s Attorney
On February 14, 2024, Channel’s board of director received a demand letter from an attorney representing Chromocell Holdings and its former Chief Executive Officer and former Chief Strategy Officer, Mr. Christian Kopfli, who was released for “cause.” Mr. Kopfli alleged an improper termination for “cause” and claimed to seek monetary damages in the amount of $479,169. Of the $479,169 asserted by Mr. Kopfli, as of September 30, 2024, Channel had accrued $363,091 in compensation expenses associated with Mr. Kopfli’s prior employment with Channel. However, Channel believed the assertions made by Mr. Kopfli were without merit and commenced a lawsuit against Mr. Kopfli and Chromocell Holdings in the Supreme Court for the State of New York, County of New York on June 7, 2024 (Index No. 652917/2024, the “New York Action”), asserting causes of action against Mr. Kopfli for breach of the Employment Agreement entered into on January 10, 2023 between Channel and Mr. Kopfli, breach of fiduciary duty by Mr. Kopfli, as well as breach of contract against Chromocell Holdings. Channel also asserted a “faithless servant” claim against Mr. Kopfli, seeking a ruling that Mr. Kopfli was not entitled to compensation from Channel. Channel sought monetary damages against Mr. Kopfli and Chromocell Holdings in the