Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 574

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 574
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ance of the Company’s CC8464, CT2000 and CT3000 programs. We have based the research
and development costs on current clinical and pre-clinical trial parameters and expectations on certain existing tax credits,
and there is no certainty that the clinical and pre-clinical trial parameters or tax credits available to the Company will remain
as they are, which could lead to changes in our research and development expenditures. Cash used to fund operating expenses is
impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued
expenses and prepaid expenses.

We
expect to continue to incur significant and increasing expenses and operating losses in connection with our ongoing research and
development activities. As a result, we expect to continue to incur operating losses and negative operating cash flows for the
foreseeable future.

As
a result, we will need to raise additional funding through strategic relationships, public or private equity or debt financings,
credit facilities, grants or other arrangements or some combination thereof. If such funding is not available or not available
on terms acceptable to us, our current development plan and plans for expansion of our general and administrative infrastructure
may be curtailed. If we raise additional funds through the issuance of preferred stock, convertible debt securities or other debt
financing, these securities or other debt could contain covenants that restrict our operations. Any other third-party funding
arrangement could require us to relinquish valuable rights.

The
source, timing and availability of any future financing will depend principally upon market conditions. Funding may not be available
when needed, at all, or on terms acceptable to us. Lack of necessary funds may require us to, among other things, delay, scale
back or eliminate expenses including some or all of our planned development. There is substantial doubt about our ability to continue
as a going concern.

Cash
Flows

The
following table summarizes our cash flows for the years ended December 31, 2024 and 2023:

    Years Ended December 31, 2024 and 2023 

    2024  
    2023  
    $ Change  
    %
                                                                               Change 

    Net cash used in operating activities 
    $(5,792,483) 
    $(981,031) 
    $(4,811,452) 
     490%

    Net cash provided by financing activities 
     6,209,535  
     1,022