Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 275

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 275
---
”) was closed by the California Department of Financial
Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver. Similarly,
on March 12, 2023, Signature Bank and Silvergate Capital Corp. were each swept into receivership. Although a statement by the
Department of the Treasury, the Federal Reserve and the FDIC indicated that all depositors of SVB would have access to all of
their money after only one business day of closure, including funds held in uninsured deposit accounts, borrowers under credit
agreements, letters of credit and certain other financial instruments with SVB, Signature Bank or any other financial institution
that is placed into receivership by the FDIC may be unable to access undrawn amounts thereunder.

Although
we regularly assess our banking relationships and the location of the assets held in the company’s account as we believe
necessary or appropriate, our access to funding sources and other credit arrangements could be significantly impaired by factors
that affect the financial services industry or economy in general. These factors could include, among others, events such as liquidity
constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or
arrangements, disruptions or instability in the financial services industry. 

Our
internal computer systems, or those of our collaborators or other contractors or consultants, may fail or suffer security breaches,
which could result in a material disruption of our product development programs.

Our
internal computer systems and those of our current and any future collaborators and other contractors or consultants are vulnerable
to damage from computer viruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures.

While
we have not experienced any such material system failure, accident or security breach to date, if such an event were to occur
and cause interruptions in our operations, it could result in a material disruption of our development programs and our business
operations, whether due to a loss of our 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 our regulatory approval efforts
and significantly increase our 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, our data or applications, or inappropriate disclosure of confidential or proprietary information,
we could incur liability, our competitive position could be harmed, and the further development and commercialization of our compounds
could be delayed.

50 

Cyber