Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 143

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 143
---
Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange
Act, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period
covered by this Report. This evaluation was carried out under the supervision and with the participation of our management, including
our Chief Executive Officer and Chief Financial Officer.

We closed the LNHC, Inc. acquisition on
July 1, 2025 and have excluded the internal control over financial reporting of LNHC, Inc. from the scope of our assessment of
the effectiveness of our disclosure controls and procedures as of September 30, 2025. This exclusion is in accordance with the
general guidance issued by the Staff of the Securities and Exchange Commission that an assessment of a recently acquired business
may be omitted from our scope in the year of acquisition, if specified conditions are satisfied.

Disclosure controls and procedures are
controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted
under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules
and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be
disclosed in our company’s reports filed under the Exchange Act is accumulated and communicated to management, including
our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. In designing
and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well
designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation
of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.
Based on the evaluation of our disclosure controls and procedures as of September 30, 2025, our Chief Executive Officer and our
Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were not effective.

Management identified the following material
weaknesses:

1.We lack 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.

2.We lack the ability to provide multiple levels of review
in connection with the financial reporting process, which means that we cannot ensure that we are meeting certain financial reporting
and transaction processing controls standards.

3.We lack the necessary internal IT infrastructure to ensure
proper IT general controls. Additionally