Company: PTHS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001753926-25-001326
Chunk: 6

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
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operate as a going concern and fund its operations through at least the next twelve months following the issuance of these
condensed consolidated financial statements. While the Company completed an equity offering of $50.1 million
subsequent to the end of the reporting period, the Company expects that costs
associated with the commercial launch of Zelsuvmi (acquired pursuant to the Merger), the potential acquisition of a second
FDA approved product and costs related to potential clinical trials associated with the existing pain programs will require the
Company to raise additional funds. However, there is no assurance that
the Company will be able to raise such additional funds on acceptable terms, if at all. If the Company raises additional
funds by issuing securities, existing stockholders may be diluted.

The
condensed consolidated financial
statements included in this report do not include any adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classification of liabilities that may result from the matters discussed herein.
While the Company believes in the viability of the Company’s strategy to generate sufficient revenue, control costs, and
raise additional funds, when necessary, there can be no assurances to that effect. The Company’s ability to continue as
a going concern is dependent upon the ability to implement the business plan, generate sufficient revenues, raise capital, and
to control operating expenses.

7 

NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and
regulations of the Securities and Exchange Commission (“SEC”). In the opinion of the Company’s management, the
accompanying condensed consolidated financial statements reflect all adjustments, consisting of normal, recurring adjustments,
considered necessary for a fair presentation of the results for the interim periods ended June 30, 2025 and 2024. Although management
believes that the disclosures in these unaudited condensed consolidated financial statements are adequate to make the information
presented not misleading, certain information and footnote disclosures normally included in condensed consolidated financial statements
that have been prepared in accordance U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC.

The
accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s financial
statements and notes