Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 289

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 289
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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 us to sell equity securities in the future at a time and at a price that we deem appropriate.

All
of the shares of Common Stock in the IPO are immediately tradable without restriction under the Securities Act, except for any
securities held by “affiliates,” as that term is defined in Rule 144 under the Securities Act, or Rule 144.

The
remaining shares of Common Stock of the Company outstanding, other than the 2,969,823 shares (the “Selling Stockholder Shares”)
of Common Stock that we have registered on behalf of certain selling stockholders (the “Selling Stockholders”) identified
in a separate prospectus (the “Resale Prospectus”) and which may be resold by such Selling Stockholders