Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 95

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 95
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 protect our trade secrets and other proprietary information.
These agreements require that all confidential information developed by the individual or made known to the individual by us during
the course of the individual’s relationship with us be kept confidential and not disclosed to third parties. Our agreements
with employees and consultants also provide that inventions conceived by the individual in the course of rendering services to
us will be our exclusive property. Despite these efforts, we cannot provide any assurances that these agreements may not effectively
prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure
of confidential information. In addition, others may independently discover our trade secrets and proprietary information.

In
the event of unauthorized use or disclosure of trade secrets or proprietary information, these agreements, even if obtained, may
not provide sufficient protection for our trade secrets or other confidential information. Further, to the extent that our employees,
consultants or contractors use technology or know-how owned by others in their work for the Company, disputes may arise as to
the rights in related inventions. This can be of particular concern with respect to university collaborators with us, who typically
have pre-existing obligations to their universities to assign intellectual property rights, which university rights generally
are superior to assignment rights that we might receive from such individuals.

Enforcing
a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive and time-consuming, and the
outcome is unpredictable. In addition, some courts inside and outside the United States are less willing or unwilling to protect
trade secrets. Moreover, third parties may still obtain this information or may come upon this or similar information independently,
and we would have no right to prevent them from using that technology or information to compete with us. Trade secrets will over
time be disseminated within the industry through independent development, the publication of journal articles, and the movement
of personnel skilled in the art from company to company or academic to industry scientific positions. Though our agreements with
third parties typically restrict the ability of our advisors, employees, collaborators, licensors, suppliers, third-party contractors,
and/or consultants to publish data potentially relating to our trade secrets, our agreements may contain certain limited publication
rights. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor, we would have no
right to prevent such competitor from using that technology or information to compete with us, which could harm our competitive
position. Because from time to time we expect to rely on third parties in the development, manufacture, and distribution