Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 75

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 75
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 to such compound. Alternatively, Channel may allocate internal resources to a compound in a therapeutic area in which it would have been more advantageous to enter into a partnering arrangement.

If any of these events occur, Channel may be forced to abandon its development efforts with respect to a particular compound or fail to develop a potentially successful compound, which could have a material adverse effect on its business, financial condition, results of operations and prospects.

If Channel is unable to manage expected growth in the scale and complexity of its operations, its performance may suffer.

If Channel is successful in executing its business strategy, it will need to expand its managerial, operational, financial and other systems and resources to manage its operations, continue its research and development activities and, in the longer term, build a commercial infrastructure to support commercialization of any of its compounds that are approved for sale. Future growth would impose significant added responsibilities on members of management. It is likely that Channel’s management, finance, development personnel, systems and facilities currently in place may not be adequate to support this future growth. Channel’s need to effectively manage its operations, growth and its compounds requires that it continues to develop more robust business processes and improve its systems and procedures in each of these areas and to attract and retain enough numbers of talented employees. Channel may be unable to successfully implement these tasks on a larger scale and, accordingly, may not achieve its research, development and growth goals.

Channel’s future success depends on our ability to retain key employees and scientific advisors and to attract, retain and motivate qualified personnel.

Channel’s success is dependent upon certain key management and technical personnel, the loss of whose services may adversely impact the achievement of its objectives. Its Chief Executive Officer, Chief Financial Officer, Chief Medical Officer, Treasurer and Corporate Secretary have played key roles in the founding, management, technology development and/or promotion of Channel. Channel currently does not hold key man insurance on its executives. Even if Channel does seek to obtain such insurance, it cannot assure you that such insurance will be available on acceptable terms or at all. The loss of the services of either its Chief Executive Officer, Chief Financial Officer, Chief Medical Officer, Treasurer or Corporate Secretary could have a material adverse effect on its business, financial condition, and results of operations.

Channel employs additional staff that are critical to implementing its clinical development and business strategy, and further development of its products will require that it recruits additional employees or consultants, particularly**

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qualified scientific and technical personnel. Any inability to retrain and attract