Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 515

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 515
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Company is a clinical-stage biotech company focused on developing and commercializing new therapeutics to alleviate pain. The
Company’s clinical focus is to selectively target the sodium ion-channel known as “NaV1.7”, which has been genetically
validated as a pain receptor in human physiology. A NaV1.7 blocker is a chemical entity that modulates the structure of the sodium-channel
in a way to prevent the transmission of pain perception to the central nervous system (“CNS”). The Company’s
goal is to develop a novel and proprietary class of NaV blockers that target the body’s peripheral nervous system.

    F-7 

Overview

The
Company has a limited operating history and has not generated revenue from its intended operations. The Company’s business
and operations are sensitive to general business and economic conditions in the U.S. and worldwide along with local, state, and
federal governmental policy decisions. A host of factors beyond the Company’s control could cause fluctuations in these
conditions. Adverse conditions may include changes in the biotechnology regulatory environment, technological advances that render
the Company’s technologies obsolete, availability of resources for clinical trials, acceptance of technologies into the
medical community, and competition from larger, more well-funded companies.

Initial
Public Offering

On October 22, 2024, the affirmative vote of a majority of the outstanding shares of Common Stock present
in person, by remote communication, if applicable, or represented by proxy at the Annual Meeting approved the
Reincorporation Merger. The Reincorporation Merger occurred on November 18, 2024.

Reincorporation
Merger and Name Change

On October 22, 2024, the affirmative vote
of a majority of the outstanding shares of Common Stock present in person, by remote communication, if applicable, or represented
by proxy at the Annual Meeting approved the Reincorporation Merger. The Reincorporation Merger occurred on November 18, 2024.

    F-8 

NOTE
2 – LIQUIDITY AND GOING CONCERN

A
fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will
continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement
of liabilities occurring in the ordinary course of business. In accordance with this requirement, the Company has prepared its
accompanying consolidated financial statements assuming the Company will continue as a going concern