Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 57

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 57
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, it is unlikely that we will generate product or licensing revenue during the next twelve months and will need to
continue to rely on additional financing to achieve our business objectives. Any additional fundraising efforts may divert our
management from their day-to-day activities, which may adversely affect our ability to develop and commercialize future compounds.
Moreover, the terms of any financing may adversely affect the holdings or the rights of our stockholders and the issuance of additional
securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our shares to decline.
The sale of additional equity or convertible securities would dilute all our stockholders. The incurrence of indebtedness would
result in increased fixed payment obligations and a portion of our operating cash flows, if any, being dedicated to the payment
of principal and interest on such indebtedness, and we may be required to agree to certain restrictive covenants, such as limitations
on our ability to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and
other operating restrictions that could adversely impact our ability to conduct our business. Furthermore, existing securityholders
may not agree with our financing plans or the terms of such financings. Adequate additional financing may not be available to
us on acceptable terms, or at all. The terms of additional financing may be impacted by, among other things, general market conditions,
and the market’s perception of future compounds. If adequate funds are not available, we may be required to curtail our
operations or other business activities or obtain funds through arrangements with strategic partners or others that may require
us to relinquish rights to certain technologies or potential markets.

We
may be subject to litigation for a variety of claims, which could adversely affect our results of operations, harm our reputation
or otherwise negatively impact our business.

We
may be subject to litigation for a variety of claims arising from our normal business activities. These may include claims, suits,
and proceedings involving labor and employment, wage and hour, commercial and other matters. The outcome of any litigation, regardless
of its merits, is inherently uncertain. Any claims and lawsuits, and the disposition of such claims and lawsuits, could be time-consuming
and expensive to resolve, divert management attention and resources, and lead to attempts on the part of other parties to pursue
similar claims. Any adverse determination related to litigation could adversely affect our results of operations, harm our reputation
or otherwise negatively impact our business. In addition, depending on the