Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 96

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 96
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rescission on stock of $0.2 million and payments on loans of $0.2 million.

Capital
Requirements

The
Company may utilize its available financial resources sooner than it currently expects. The Company will need to raise additional
capital in the future if it decides to expand its business, to develop other product candidates, or to pursue strategic investments
or acquisitions, and it may consider raising additional capital to take advantage of favorable market conditions or financing
opportunities or for other reasons.

Our
future capital requirements will depend on many factors, including, but not limited to:

●The
                                         level of sales achieved from the commercialization of ZELSUVMI for the treatment of molluscum
                                         contagiosum;

●the
                                         costs of commercializing ZELSUVMI, including our business development and marketing efforts;

●the
                                         effect of competing products and other market developments;

●the
                                         extent to which the Company acquires or seeks to develop other product candidates;

●the
                                         costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing
                                         patents and other intellectual property and proprietary rights, and

●our
                                         efforts to enhance operational systems and hire additional personnel to satisfy our obligations
                                         as a public company.

The
Company anticipates that its principal uses of cash in the future will be primarily to fund our operations, working capital needs,
capital expenditures and other general corporate purposes.

56

Critical
Accounting Policies and Estimates

The preparation of condensed consolidated
financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and
liabilities, revenues and expenses, and related disclosures of contingent liabilities in the condensed financial statements and
accompanying notes. The U.S. Securities and Exchange Commission (the “SEC”) has defined a company’s critical
accounting policies as the ones that are most important to the portrayal of the company’s financial condition and results
of operations, and which require the company to make its most difficult and subjective judgments, often as a result of the need
to make estimates of matters that are inherently uncertain. Based on this definition, the Company has identified the critical accounting
policies and judgments addressed below. The Company also has other key accounting policies, which involve the use of estimates,
judgments, and assumptions that are significant to understanding our results. Changes in estimates are reflected in reported results
for the period in which they become known. Actual results may differ materially from these estimates under different assumptions
or conditions.