Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 54

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 54
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 validating commercial scale manufacturing processes, obtaining marketing approval for our compounds, manufacturing, and marketing.
Licensing and selling any future compounds for which we may obtain marketing approval and satisfying any post-marketing requirements.
If we were required to discontinue development of CC8464, CT2000 or CT3000, if CC8464, CT2000 or CT3000 does not receive regulatory
approval, if we do not obtain our targeted indication(s) for CC8464, CT2000 or CT3000, or if CC8464, CT2000 pr CT3000 fails to
achieve sufficient market acceptance for any indication, we could be delayed by many years in our ability to achieve profitability.
Our failure to become and remain profitable would decrease the value of our company and could impair our ability to raise capital,
maintain our research and development efforts, expand our business or continue our operations. A decline in the value of our company
also could cause you to lose all or part of your investment.

Our
business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or our internal control
over financial reporting.

The
design and effectiveness of our disclosure controls and procedures and our internal control over financial reporting may not prevent
all errors, misstatements or misrepresentations. There can be no guarantee that our disclosure controls and procedures and internal
control over financial reporting will be effective in accomplishing all control objectives all of the time. Deficiencies, including
any material weaknesses, in our disclosure controls and procedures or internal control over financial reporting could result in
misstatements of our results of operations or our consolidated financial statements or could otherwise materially and adversely
affect our business, reputation, results of operations, financial condition or liquidity.

31 

We
have identified material weaknesses in our internal control over financial reporting. 

Prior
to our IPO, we were a private company and had limited accounting and financial reporting personnel and other resources with which
to address our internal controls and related procedures. In connection with the audit and review, as applicable, of our consolidated
financial statements for the years ended December 31, 2024 and 2023, we identified material weaknesses in our internal control
over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial
reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial
statements will not be prevented or detected on a timely basis. The material weaknesses in our case