Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 53

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 53
---
 clinical trials is a time-consuming, expensive and uncertain process that takes years to complete, and Channel may never generate the necessary data or results required to obtain marketing approval and achieve product sales. Channel’s lead compounds, if approved, may not achieve commercial success. Its future compound’s revenues, if any, will be derived from or based on sales of compounds that may not be commercially available for many years, if at all. Accordingly, it is unlikely that Channel will generate product or licensing revenue during the next twelve months and will need to continue to rely on additional financing to achieve its business objectives. Any additional fundraising efforts may divert its management from their day-to-day activities, which may adversely affect its ability to develop and commercialize future compounds. Moreover, the terms of any financing may adversely affect the holdings or the rights of its stockholders and the issuance of additional securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of Channel common stock to decline. The sale of additional equity or convertible securities would dilute all Channel stockholders. The incurrence of indebtedness would result in increased fixed payment obligations and a portion of its operating cash flows, if any, being dedicated to the payment of principal and interest on such indebtedness, and Channel may be required to agree to certain restrictive covenants, such as limitations on its ability to incur additional debt, limitations on its ability to acquire, sell or license intellectual property rights and other operating restrictions that could adversely impact its ability to conduct its business. Furthermore, existing securityholders may not agree with its financing plans or the terms of such financings. Adequate additional financing may not be available to Channel on acceptable terms, or at all. The terms of additional financing may be impacted by, among other things, general market conditions, and the market’s perception of future compounds. If adequate funds are not available, Channel may be required to curtail its operations or other business activities or obtain funds through arrangements with strategic partners or others that may require it to relinquish rights to certain technologies or potential markets. Channel may be subject to litigation for a variety of claims, which could adversely affect its results of operations, harm its reputation or otherwise negatively impact its business. Channel may be subject to litigation for a variety of claims arising from its normal business activities. These may include claims, suits, and proceedings involving labor and employment, wage and hour, commercial and other matters. The outcome of any litigation, regardless of its merits, is inherently uncertain. Any claims and lawsuits, and the