Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 90

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 90
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 assurances that these agreements may not effectively prevent disclosure of confidential information and may not

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TABLE OF CONTENTS

provide an adequate remedy in the event of unauthorized disclosure of confidential information. In addition, others may independently discover Channel’s trade secrets and proprietary information. In the event of unauthorized use or disclosure of trade secrets or proprietary information, these agreements, even if obtained, may not provide sufficient protection for Channel’s trade secrets or other confidential information. Further, to the extent that its employees, consultants or contractors use technology or know-how owned by others in their work for Channel, disputes may arise as to the rights in related inventions. This can be of particular concern with respect to university collaborators with Channel, who typically have pre-existing obligations to their universities to assign intellectual property rights, which university rights generally are superior to assignment rights that it might receive from such individuals. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive and time-consuming, and the outcome is unpredictable. In addition, some courts inside and outside the United States are less willing or unwilling to protect trade secrets. Moreover, third parties may still obtain this information or may come upon this or similar information independently, and Channel would have no right to prevent them from using that technology or information to compete with it. Trade secrets will over time be disseminated within the industry through independent development, the publication of journal articles, and the movement of personnel skilled in the art from company to company or academic to industry scientific positions. Though Channel’s agreements with third parties typically restrict the ability of its advisors, employees, collaborators, licensors, suppliers, third-party contractors, and/or consultants to publish data potentially relating to its trade secrets, its agreements may contain certain limited publication rights. If any of Channel’s trade secrets were to be lawfully obtained or independently developed by a competitor, it would have no right to prevent such competitor from using that technology or information to compete with Channel which could harm our competitive position. Because from time to time Channel expects to rely on third parties in the development, manufacture, and distribution of its products and provision of its services, it must, at times, share trade secrets with them. Despite employing the contractual and other security precautions described above, the need to share trade secrets increases the risk that such trade secrets become known by its competitors, are inadvertently incorporated into the technology of others, or are disclosed or used in violation of these agreements. If any of these events occurs or if Channel otherwise loses protection for its trade secrets, the value of this information may