Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 85

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 85
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 do not carry specific biological or hazardous waste insurance
coverage, and our property, casualty and general liability insurance policies specifically exclude coverage for damages and fines
arising from biological or hazardous waste exposure or contamination. Accordingly, in the event of contamination or injury, we
could be held liable for damages or be penalized with fines in an amount exceeding our resources, and our clinical trials or regulatory
approvals could be suspended.

Although
we maintain workers’ compensation insurance for certain costs and expenses, we may incur due to injuries to our employees
resulting from the use of hazardous materials or other work-related injuries, this insurance may not provide adequate coverage
against potential liabilities. We do not maintain insurance for toxic tort claims that may be asserted against us in connection
with our storage or disposal of biologic, hazardous or radioactive materials.

49 

We
also may incur substantial costs to comply with current or future environmental, health and safety laws and regulations, which
have tended to become more stringent over time. These current or future laws and regulations may impair our research, development
or production efforts. Failure to comply with these laws and regulations also may result in substantial fines, penalties or other
sanctions or liabilities, which could materially adversely affect our business, financial condition, results of operations and
prospects.

Unfavorable
global economic conditions could adversely affect our business, financial condition or results of operations.

Our
results of operations could be adversely affected by general conditions in the global economy and in the global financial markets,
including conditions that are outside of our control, such as the impact of health and safety concerns, as well as the recent
inflation in the United States, foreign and domestic government sanctions imposed on Russia as a result of its invasion of Ukraine,
war or other military conflict, terrorist activities, and other disruptions to global supply chains. Each of these events has
caused or may continue to result in extreme volatility and disruptions in the capital and credit markets. A severe or prolonged
economic downturn, whether due to inflationary pressures or otherwise, could result in a variety of risks to our business, including
weakened demand for our compounds and our ability to raise additional capital when needed on acceptable terms, if at all. A weak
or declining economy could strain our suppliers, possibly resulting in supply disruption, or cause delays in payments for our
services by third-party payors or our collaborators. Any of the foregoing could harm our business and we cannot anticipate all
the ways in which the current economic climate and financial