Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 297

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 297
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 and its affiliates’ beneficial
ownership exceeding than 4.99% of the outstanding shares of the Common Stock (the “Beneficial Ownership Limit”).

Any
issuance and sale by us under the CEF Purchase Agreement of a substantial amount of Purchase Shares could cause additional substantial
dilution to our stockholders. The number of Purchase Shares ultimately offered for resale by Tikkun is dependent upon the number
of Purchase Shares we ultimately sell to Tikkun under the CEF Purchase Agreement.

Our
inability to access a portion or the full amount available under the CEF Purchase Agreement, in the absence of any other financing
sources, could have a material adverse effect on our business.

Sales
of a substantial number of our Common Stock in the public market by our existing stockholders could cause the price of our shares
of our Common Stock to fall.

Tikkun may resell up to 2,000,000 Purchase
Shares, from time to time during the term of the CEF Purchase Agreement. If all of the 2,000,000 Purchase Shares were issued and
outstanding as of the date hereof (without taking into account the Exchange Cap limitation), such shares would represent approximately
24.7% of the total number of outstanding shares of our Common Stock and approximately 26.9% of the total number of outstanding
shares of our Common Stock held by non-affiliates of our Company, in each case as of March 7, 2025.

Sales
of a substantial number of our shares of our Common Stock in the public market by Tikkun and/or by our other existing stockholders,
or the perception that those sales might occur, could depress the market price of shares of our Common Stock and could impair
our ability to raise capital through the sale of additional equity securities.

Investors
who buy shares of our Common Stock at different times will likely pay different prices.

Pursuant
to the CEF Purchase Agreement, we will have discretion, subject to market demand, to vary the timing, prices, and numbers of Purchase
Shares sold to Tikkun. If and when we do elect to sell Purchase Shares to Tikkun under the CEF Purchase Agreement, after Tikkun
has acquired such shares, Tikkun may resell all or a portion of such shares at any time or from time to time in its discretion
and at different prices. As a result, investors who purchase shares of our Common Stock from Tikkun at different times will