Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 112

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 112
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 Suite 1000, Freehold, NJ 07728. The lease for our principal executive
offices is on a month-to-month basis. We believe our executive offices are adequate to meet our current needs, although we may
seek to negotiate new leases or evaluate additional or alternate space to support our operations and regulatory needs. We believe
appropriate alternative space will be readily available on commercially reasonable terms.

Item
3. Legal Proceedings

From
time to time, we may be involved in legal proceedings arising in the ordinary course of our business. We are not presently a party
to any legal proceedings that, in the opinion of our management, would have a material adverse effect on our business. Regardless
of outcome, litigation can have an adverse impact on us 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, our board of directors received a demand letter from an attorney representing Chromocell Holdings and our former
Chief Executive Officer and former Chief Strategy Officer, Mr. Christian Kopfli, who was released for “cause” as disclosed
elsewhere in this Report. 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 December 31,
2024, the Company had accrued $363,091 in compensation expenses associated with Mr. Kopfli’s prior employment with the Company.
However, the Company believed the assertions made by Mr. Kopfli were without merit and commenced the New York Action against Mr.
Kopfli and Chromocell Holdings, asserting causes of action against Mr. Kopfli
for breach of the Employment Agreement entered into on January 10, 2023 between the Company and Mr. Kopfli, breach of fiduciary
duty by Mr. Kopfli, as well as breach of contract against 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