Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 83

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 83
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 Act, and the resale of the shares of Common
Stock issuable upon conversion of the Series A Preferred Stock will be registered pursuant to a resale registration statement
(the “Registration Statement”).

The
Company also agreed to defend, indemnify and hold harmless the PIPE Investors and their respective stockholders, partners, members,
officers, directors, employees, direct or indirect investors, and any of their agents or other representatives against any and
all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (including reasonable attorneys’ fees) arising out of or relating to: (i) any misrepresentation or breach of any
representation or warranty made by the Company or its subsidiaries, (ii) any breach of any covenant, agreement or obligation owed
by the Company or its subsidiaries, or (iii) any cause of action, suit, proceeding or claim brought by a third party, including
any derivative action, that arises out of or relates to (A) the execution, delivery, performance or enforcement of the Purchase
Agreement and related transaction documents, (B) any transaction financed or to be financed in whole or in part with the proceeds
of the PIPE Financing, or (C) the status of such PIPE Investor either as an investor in the Company pursuant to the transactions
contemplated by the Purchase Agreement or as a party to the Purchase Agreement and related transaction documents. 

Going
Concern

For
the three months ended March 31, 2025 and 2024, we had a net loss of approximately $2.0 million and approximately $2.6 million,
respectively, and will require additional capital in order to operate in the normal course of business and fund clinical studies.
The IPO closed on February 21, 2024, from which, the Company received net proceeds from the IPO of approximately $5.7 million
after deducting the underwriting discounts and commissions and offering expenses payable by the Company (excluding any exercise
of the warrants issued to A.G.P./Alliance Global Partners (the “Representative”)
or its designees, in connection with the IPO).

Based
on the Company’s current projections, management believes there is substantial doubt about its ability to continue to operate
as a going concern and fund its operations through at least the next twelve months following the issuance of these consolidated
financial statements. While the Company will continue to invest in its business and the development of CC8464