Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 87

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 87
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 such an event were to occur
and cause interruptions in our operations, it could result in a material disruption of our development programs and our business
operations, whether due to a loss of our trade secrets or other proprietary information or other similar disruptions. For example,
the loss of clinical trial data from completed or future clinical trials could result in delays in our regulatory approval efforts
and significantly increase our costs to recover or reproduce the data. To the extent that any disruption or security breach were
to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary information,
we could incur liability, our competitive position could be harmed, and the further development and commercialization of our compounds
could be delayed.

50 

Cyber-security
incidents, including data security breaches or computer viruses, could harm our business by disrupting our delivery of services,
damaging our reputation or exposing us to liability.

We
receive, process, store and transmit, often electronically, confidential data of others. Unauthorized access to our computer systems
or stored data could result in the theft or improper disclosure of confidential information, the deletion or modification of records,
or could cause interruptions in our operations. These cyber-security risks increase when we transmit information from one location
to another, including transmissions over the Internet or other electronic networks. Despite implemented security measures, our
facilities, systems, and procedures, and those of our third-party service providers, may be vulnerable to security breaches, acts
of vandalism, software viruses, misplaced or lost data, programming and/or human errors, or other similar events which may disrupt
our delivery of services or expose the confidential information of our customers and others. Any security breach involving the
misappropriation, loss or other unauthorized disclosure or use of confidential information of others, whether by us or a third
party, could: (i) subject us to civil and criminal penalties; (ii) have a negative impact on our reputation; or (iii) expose us
to liability to our customers, third parties or government authorities.

Product
liability lawsuits against us could cause us to incur substantial liabilities and to limit commercialization of any products that
we may develop.

Our
business exposes us to significant potential product liability risks that are inherent in the development, manufacturing, marketing
and sale of human device and drug products. Product liability claims could delay or prevent completion of its development programs,
clinical or otherwise. If we succeed in marketing and selling products, such claims could result in a recall of any products