Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 291

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 291
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ances could result in substantial dilution
to our existing stockholders and could cause the trading price of our securities to decline.

The
Series C Preferred Stock has a liquidation preference over our Common Stock.

The
Series C Preferred Stock has a liquidation preference that gets paid prior to any payment on our Common Stock. As a result, if
we were to liquidate, dissolve or wind-up, each holder of our Series C Preferred Stock would have the right to receive payment
out of our assets available for distribution, before any amount is paid to the holders of our Common Stock, in an amount in cash
equal to the aggregate liquidation value of all of the shares of preferred stock held by such holder. Holders of the Series C
Preferred Stock will not be entitled to dividends. The payment of the liquidation preferences on the Series C Preferred Stock
could result in holders of our Common Stock not receiving any proceeds if we were to liquidate, dissolve or wind up, either voluntarily
or involuntarily.

59 

The
existence of the liquidation preferences may reduce the value of our Common Stock, make it harder for us to sell shares of Common
Stock in offerings in the future, or prevent or delay a change of control.

If
securities analysts do not publish research or reports about our business or if they publish negative evaluations of our stock,
the price of our stock could decline.

The
trading market for our Common Stock relies, in part, on the research and reports that industry or financial analysts publish about
us or our business. If securities analysts do not commence coverage of us, the trading price of our stock could decrease. Additionally,
if one or more of the analysts covering our business downgrade their evaluations of our stock, the price of our stock could decline.
If one or more of these analysts cease to cover our stock, we could lose visibility in the market for our stock, which in turn
could cause our stock price to decline.

The
price of our securities may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of
our securities.

The
market price of our securities is likely to be highly volatile due to many factors, including:

    ●
    our ability to successfully
    proceed to and conduct clinical trials;

    ●
    results of pre-clinical
    and clinical trials of our existing lead or new future compounds or those of our competitors;

    ●
    the success of competitive
    products or technologies;

    ●
    commencement or