Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 92

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 92
---
 CC8464, CT2000 and CT3000, or force us to cease some or all our business operations. If we are found or believe there
is a risk that we may be found, to infringe a third party’s valid and enforceable intellectual property rights, we could
be required (or may choose) to obtain a license from such a third party to continue developing, manufacturing and marketing our
technologies. However, we may not be able to obtain any required license on commercially reasonable terms, if at all. Even if
we were able to obtain a license, it could be non-exclusive, thereby giving our competitors and other third parties access to
the same technologies licensed to us, and further, it could require us to make substantial licensing and royalty payments. We
could be forced, including by court order, to cease developing, manufacturing and commercializing the infringing technologies,
including CC8464, CT2000 and CT3000. We also could be found liable for monetary damages, including treble damages and attorneys’
fees if we are found to have willfully infringed a patent or other intellectual property right. Claims that we have misappropriated
the confidential information or trade secrets of third parties could have a similar negative impact on our business, financial
condition, results of operations and prospects.

53 

Litigation
or other legal or administrative proceedings relating to intellectual property claims, with or without merit, is unpredictable
and generally expensive and time consuming. Competitors may infringe our current or future patents, should such patents issue,
or we may be required to defend against claims of infringement or other unauthorized use of third-party intellectual property
or third-party attacks against our intellectual property rights. Even if resolved in our favor, litigation or other legal proceedings
relating to intellectual property may cause us to incur significant expenses and could distract our scientific and management
personnel from their normal responsibilities. Furthermore, because of the substantial amount of discovery required in connection
with intellectual property litigation and administrative proceedings, there is a risk that some of our confidential information
could be compromised by disclosure during this type of litigation despite our attempts to prevent such disclosure. In addition,
there could be public announcements of the results of hearings, motions, or other interim proceedings or developments and, if
securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price
of our Common Stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources
available for development