Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 82

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 82
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 such material system failure, accident or security breach to date, if such an event were to occur and cause interruptions in its operations, it could result in a material disruption of its development programs and its business operations, whether due to a loss of its trade secrets or other proprietary information or other similar disruptions. For example, the loss of clinical trial data from completed or future clinical trials could result in delays in Channel’s regulatory approval efforts and significantly increase its costs to recover or reproduce the data. To the extent that any disruption or security breach were to result in a loss of, or damage to, its data or applications, or inappropriate disclosure of confidential or proprietary information, Channel could incur liability, its competitive position could be harmed, and the further development and commercialization of its compounds could be delayed. Cyber-security incidents, including data security breaches or computer viruses, could harm Channel’s business by disrupting its delivery of services, damaging its reputation or exposing it to liability. Channel receives, processes, stores and transmits, often electronically, confidential data of others. Unauthorized access to Channel’s computer systems or stored data could result in the theft or improper disclosure of confidential information, the deletion or modification of records, or could cause interruptions in its operations. These cyber-security risks increase when it transmits information from one location to another, including transmissions over the Internet or other electronic networks. Despite implemented security measures, Channel’s facilities, systems, and procedures, and those of its third-party service providers, may be vulnerable to security breaches, acts of vandalism, software viruses, misplaced or lost data, programming and/or human errors, or other similar events which may disrupt Channel’s delivery of services or expose the confidential information of its customers and others. Any security breach involving the misappropriation, loss or other unauthorized disclosure or use of confidential information of others, whether by Channel or a third party, could: (i) subject Channel to civil and criminal penalties; (ii) have a negative impact on Channel’s reputation; or (iii) expose Channel to liability to our customers, third parties or government authorities. Product liability lawsuits against Channel could cause it to incur substantial liabilities and to limit commercialization of any products that it may develop. Channel’s business exposes it to significant potential product liability risks that are inherent in the development, manufacturing, marketing and sale of human device and drug products. Product liability claims could delay or prevent completion of its development programs, clinical or otherwise. If Channel succeeds in marketing and selling products, such claims could result in a recall of any products or a limitation or other