Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 281

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 281
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 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 activities or any future sales, marketing, or distribution activities.  

We
may not have sufficient financial or other resources to adequately conduct such litigation or proceedings. Some of our competitors
may be able to sustain the costs of such litigation or proceedings more effectively than we can because of their greater financial
resources. Accordingly, despite our efforts, we may not be able to prevent third parties from infringing, misappropriating, or
successfully challenging our intellectual property rights. Uncertainties resulting from the initiation and continuation of patent
litigation or other proceedings could have a material adverse effect on our ability to compete in the marketplace.

Changes
in United States patent law and its administrative and judicial interpretation could diminish the value of patents in general,
thereby impairing our ability