Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 269

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 269
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 not achieve our research, development and growth goals.

Our
future success depends on our ability to retain key employees and scientific advisors and to attract, retain and motivate qualified
personnel.

Our
success is dependent upon certain key management and technical personnel, the loss of whose services may adversely impact the
achievement of our objectives. Our Chief Executive Officer, Chief Financial Officer, Chief Medical Officer, Treasurer and Corporate
Secretary have played key roles in the founding, management, technology development and/or promotion of the Company. We currently
do not hold key man insurance on our executives. Even if we do seek to obtain such insurance, we cannot assure you that such insurance
will be available on acceptable terms or at all. The loss of the services of either our Chief Executive Officer, Chief Financial
Officer, Chief Medical Officer, Treasurer or Corporate Secretary could have a material adverse effect on our business, financial
condition, and results of operations.

We
employ additional staff that are critical to implementing our clinical development and business strategy, and further development
of our products will require that we recruit additional employees or consultants, particularly qualified scientific and technical
personnel. Any inability to retrain and attract key employees or advisors may impede the progress of our research, development
and commercialization objectives which could have a material adverse effect on our business, financial condition, results of operations
and prospects. In addition, failure to succeed in preclinical or clinical trials or applications for marketing approval may make
it more challenging to recruit and retain qualified personnel.

Our
employees, principal investigators and advisors may engage in misconduct or other improper activities, including non-compliance
with regulatory standards and requirements.

We
are exposed to the risk of fraud or other misconduct by our employees, principal investigators and advisors. Misconduct by these
parties could include intentional failures to comply with FDA regulations or the regulations applicable in the European Union
and other jurisdictions, provide accurate information to the FDA, the EMA and other regulatory authorities, comply with healthcare
fraud and abuse laws and regulations in the United States and abroad, report financial information or data accurately or disclose
unauthorized activities to us. Sales, marketing and business arrangements in the healthcare industry are subject to extensive
laws and regulations intended to prevent fraud, misconduct, kickbacks, self-dealing and other abusive practices. These laws and
regulations restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive
programs and other business arrangements. Such misconduct also could involve the improper use