Company: PTHS
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001753926-25-000652
Chunk: 12

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 4.01
Chunk 12
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Item 4.01. Changes in Registrant’s Certifying Accountant.

Based on information provided by Marcum
LLP (“ Marcum”), the independent registered public accounting firm of Channel, on November 1, 2024, CBIZ CPAs
P. C. (“ CBIZ”) acquired the attest business of Marcum, and substantially all of the partners and staff that provided
attestation services with Marcum joined CBIZ. On April 11, 2025, Channel was notified by Marcum that Marcum resigned as Channel’s
independent registered public accounting firm. On April 11, 2025, with the approval of Channel’s Board of Directors, CBIZ
was engaged as Channel’s independent registered public accounting firm.

Marcum’s report on Channel’s
consolidated financial statements for the fiscal years ended December 31, 2024 and 2023 did not contain an adverse opinion or a
disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

During the fiscal years ended December
31, 2024 and 2023, and through April 11, 2025, the date of Marcum’s resignation, there were (a) no disagreements (as defined
in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) with Marcum on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to Marcum’s satisfaction,
would have caused Marcum to make reference to the subject matter of the disagreement in connection with its reports on Channel’s
consolidated financial statements for such periods and (b) no “reportable events” (as defined in Item 304(a)(1)(v)
of Regulation S-K and the related instructions), except for the previously disclosed identification of material weaknesses in Channel’s
internal control over financial reporting, including: (i) Channel lacked the necessary corporate accounting resources to maintain
adequate segregation of duties. Such a lack of segregation of duties is typical in a company with limited resources; (ii) Channel
lacked the ability to provide multiple levels of review in connection with the financial reporting process, which means it cannot
be ensured that Channel is meeting certain financial reporting and transaction processing controls standards and (iii) Channel
lacked the necessary internal IT infrastructure to ensure proper IT general controls, additionally, Channel is reliant on third-party
software for its financial systems and cannot ensure there are