Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 38

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 Holdings. The Company also asserted a “faithless
servant” claim against Mr. Kopfli, seeking a ruling that Mr. Kopfli was not entitled to compensation from the Company. The
Company sought monetary damages against Mr. Kopfli and Chromocell Holdings in the New York Action, plus disgorgement of all compensation
previously paid or accrued to Mr. Kopfli by the Company.

By
Order dated October 3, 2024, the court in the New York Action awarded the Company a default judgment against Mr. Kopfli and Chromocell
Holdings on all claims. On July 25, 2025, following an inquest held before the court regarding the Company’s damages, the
court entered an order (i) holding that the Company (identified in the order as Chromocell Therapeutics Corporation) is entitled
to damages against Mr. Kopfli and Chromocell Corporation, jointly and severally, in the amount of $17,950,205.38, as well as additional
damages against Mr. Kopfli in the amount of $348,461, and (ii) directing entry of judgment in the Company’s favor for those
amounts, accordingly. As of June 30, 2025, the Company has removed the accrual of $348,461 in compensation expenses.

    26 

Lang
Demand Letter

On
July 24, 2025, the Company received a demand latter (the “Lang Demand Letter”) from an attorney representing Dr. Eric
Lang, the former Chief Medical Officer of the Company. The Lang Demand Letter asserts that the Company breached Dr. Lang’s
employment contract with the Company and violated Dr. Lang’s rights under New Jersey wage and hour laws and the federal
Consolidated Omnibus Budget Reconciliation Act (“COBRA”). The Lang Demand Letter asserts potential liability of as
much as $1,008,095, an amount that includes liquidated damages of $640,000 that the Company believes are unavailable under applicable
law. The Company is in the process of responding to the Lang Demand Letter. We are unaware of any litigation or proceeding against
the Company in connection with the Lang Demand letter at this time. The Company intends to defend itself vigorously in the event
that any action is commenced against it regarding the same.

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Cautionary
Notice Regarding Forward Looking Statements