Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 5

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 other molecules, it is unlikely that the Company will generate product or licensing revenue during the next twelve
months. During the three months ended March 31, 2024, the Company completed its initial public offering, raising $5.7 million, after
deducting the underwriting discounts and commissions and offering expenses, and it is likely the Company will need to raise additional
funds through either strategic partnerships or the capital markets. However, there is no assurance that the Company will be able
to raise such additional funds on acceptable terms, if at all. If the Company raises additional funds by issuing securities, existing
stockholders may be diluted.

The
consolidated financial
statements included in this report do not include any adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classification of liabilities that may result from the matters discussed herein.
While the Company believes in the viability of the Company’s strategy to generate sufficient revenue, control costs, and
raise additional funds, when necessary, there can be no assurances to that effect. The Company’s ability to continue as
a going concern is dependent upon the ability to implement the business plan, generate sufficient revenues, raise capital, and
to control operating expenses.

NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and
regulations of the Securities and Exchange Commission (“SEC”). In the opinion of the Company’s management, the
accompanying condensed consolidated financial statements reflect all adjustments, consisting of normal, recurring adjustments,
considered necessary for a fair presentation of the results for the interim periods ended March 31, 2025 and 2024. Although management
believes that the disclosures in these unaudited condensed consolidated financial statements are adequate to make the information
presented not misleading, certain information and footnote disclosures normally included in condensed consolidated financial statements
that have been prepared in accordance U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC.

The
accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s financial
statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31,
2024, filed with