Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1193

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 1193
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 number of shares repurchased
will depend on a variety of factors including trading price, the Company’s financial performance, corporate and regulatory
requirements and other market conditions. On
October 22, 2024, the board of directors authorized an amendment (the “Amendment”) to the Repurchase Plan to increase
the total value of shares of Common Stock available for repurchase by the Company under the Repurchase Plan by an additional $500,000,
to $750,000.

Future
Funding Requirements

Our
primary use of cash is to fund clinical development, operating expenses and repay accrued liabilities associated with our IPO
and prior operating expenses.

With
respect to the Company’s future expected operations expenses, the primary expense drivers will be research and development
and management overhead, including costs of being a public company. Of these, research and development is a significant expense
which has been utilized for the furtherance of the Company’s CC8464, CT2000 and CT3000 programs. We have based the research
and development costs on current clinical and pre-clinical trial parameters and expectations on certain existing tax credits,
and there is no certainty that the clinical and pre-clinical trial parameters or tax credits available to the Company will remain
as they are, which could lead to changes in our research and development expenditures. Cash used to fund operating expenses is
impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued
expenses and prepaid expenses.

We
expect to continue to incur significant and increasing expenses and operating losses in connection with our ongoing research and
development activities. As a result, we expect to continue to incur operating losses and negative operating cash flows for the
foreseeable future.

As
a result, we will need to raise additional funding through strategic relationships, public or private equity or debt financings,
credit facilities, grants or other arrangements or some combination thereof. If such funding is not available or not available
on terms acceptable to us, our current development plan and plans for expansion of our general and administrative infrastructure
may be curtailed. If we raise additional funds through the issuance of preferred stock, convertible debt securities or other debt
financing, these securities or other debt could contain covenants that restrict our operations. Any other third-party funding
arrangement could require us to relinquish valuable rights.

The
source, timing and availability of any future financing will depend principally upon market conditions. Funding may not be available
when