Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 105

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 105
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 an “emerging growth company: (i) we will not be required to comply with the auditor attestation
requirements of Section 404(b) of the Sarbanes-Oxley Act; (ii) we will be exempt from any rules that may be adopted by the Public
Company Accounting Oversight Board requiring mandatory audit firm rotations or a supplement to the auditor’s report on financial
statements; (iii) we will be subject to reduced disclosure obligations regarding executive compensation in our periodic reports
and proxy statements; and (iv) we will not be required to hold nonbinding advisory votes on executive compensation or stockholder
approval of any golden parachute payments not previously approved. Investors may find our Common Stock less attractive if we rely
on the exemptions and relief granted by the JOBS Act. If some investors find our Common Stock less attractive as a result, there
may be a less active trading market for our Common Stock and our stock price may decline or become more volatile.

We
have taken advantage of reduced reporting burdens in this Report. We cannot predict whether investors will find our Common Stock
less attractive if we rely on certain or all of these exemptions. If some investors find our Common Stock less attractive as a
result, there may be a less active trading market for our Common Stock and our stock price may be more volatile.

In
addition, the JOBS Act provides that an emerging growth company may take advantage of an extended transition period for complying
with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards
until those standards would otherwise apply to private companies. We have irrevocably elected not to avail ourselves of this exemption
from new or revised accounting standards and, therefore, we will be subject to the same new or revised accounting standards as
other public companies that are not emerging growth companies.

61 

The
requirements of being a public company may strain our resources and divert management’s attention.

As
a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the
Dodd-Frank Wall Street Reform and Consumer Protection Act and other applicable securities rules and regulations. The Exchange
Act requires, among other things, that we file annual and current reports with the SEC with respect to our business and operating
results. Compliance with these rules and regulations increases our legal and financial compliance costs, makes some activities
more difficult, time-consuming, or costly, and increases demand on our