Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 100

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 100
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 District Court does not have jurisdiction, any other state district court located in the State
of Nevada, and if no state district court in the State of Nevada has jurisdiction, any federal court located in the State of Nevada), will
be the exclusive forum for each of the following:

●any
                                         derivative action, suit or proceeding brought on behalf of the Company,

●any
                                         action, suit or proceeding asserting a claim of breach of a fiduciary duty owed by any
                                         director, officer, employee or stockholder of the Company to the Company or to the Company’s
                                         stockholders, or

●any
                                         action, suit or proceeding arising pursuant to any provision of the Nevada Revised Statutes
                                         (“NRS”) Chapter 78 of the State of Nevada, as amended or our bylaws or our
                                         articles of incorporation (as either may be amended and/or restated from time to time)

The
exclusive forum provision provides federal courts located in the State of Nevada as the forum for suits brought to enforce any
duty or liability for which Section 27 of the Exchange Act establishes exclusive jurisdiction with the federal courts,
or any other claim for which the federal courts have exclusive jurisdiction. In addition, Section 22 of the Securities Act
provides that federal and state courts have concurrent jurisdiction over lawsuits brought under the Securities Act or
the rules and regulations thereunder. To the extent the exclusive forum provision restricts the courts in which claims arising
under the Securities Act may be brought, there is uncertainty as to whether a court would enforce such a provision.
We note that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. Although
we believe this provision will benefit the Company by providing increased consistency in the application of Nevada law in the
types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers.

58 

A
significant portion of our total outstanding shares are restricted from immediate resale but may be sold into the market in the
near future, which could cause the market price of our Common Stock to drop significantly, even if our business is performing
well.

Sales
of substantial amounts of our shares of Common Stock in the public market following the IPO, or the perception that these sales
could occur, could cause the market price of our securities to decline. These sales, or the possibility that these sales may occur,
also might make it more difficult for