Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 2390

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 15
Chunk 2390
---
 included in general and administrative expenses in the consolidated
statements of operations.

F-25 

NOTE
7 – LEGAL

Demand
Letter from Mr. Kopfli’s Attorney

On
February 14, 2024, the Board received a demand letter from an attorney representing Chromocell Holdings and the Company’s
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 are
without merit and commenced a lawsuit against Mr. Kopfli and Chromocell Holdings in
New York Action, 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 in connection with the Contribution Agreement between the Company and 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
Order dated October 3, 2024, the court in the New York Action awarded the Company a default judgment against Mr. Kopfli and Chromocell
Holdings on all claims, and ordered an assessment of damages against Mr. Kopfli and Chromocell Holdings (currently scheduled to
be held in May 2025). As of December 31, 2024, the Company has removed the accrual of $363,091 in compensation expenses and recorded
a gain on default judgement in the same amount.

Parexel
Claim

On
July 31, 2024,