Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 1198

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 1198
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 Controls and Procedures.

Evaluation
of Disclosure Controls and Procedures

As
required by Rule 13a-15 under the Exchange Act, we have carried out an evaluation of the effectiveness of our disclosure controls
and procedures as of the end of the period covered by this Report. This evaluation was carried out under the supervision and with
the participation of our management, including our Chief Executive Officer and Chief Financial Officer.

Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods
specified in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure
that information required to be disclosed in our company’s reports filed under the Exchange Act is accumulated and communicated
to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required
disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures,
no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met,
and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a
company have been detected. Based on the evaluation of our disclosure controls and procedures as of December 31, 2024, our Chief
Executive Officer and our Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were
not effective.

Management
identified the following material weaknesses:

    1.
    We lack
    the necessary corporate accounting resources to maintain adequate segregation of duties. Such a lack of segregation of duties
    is typical in a company with limited resources.

    2.
    We lack the ability
    to provide multiple levels of review in connection with the financial reporting process, which means that we cannot ensure
    that we are meeting certain financial reporting and transaction processing controls standards.

    3.
    We lack the necessary
    internal IT infrastructure to ensure proper IT general controls. Additionally, we are reliant on third-party software for
    our financial systems and cannot ensure there are no vulnerabilities in these systems.

Management’s
Report on Internal Control over Financial Reporting 

This
Report does not include a report of management’s assessment regarding internal control over financial reporting or an attestation
report of the Company’s registered public accounting firm due to a transition period established by rules of the SEC for
newly public companies. Additionally