Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 109

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 109
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our ability to raise capital through the sale of additional equity securities.

Investors
who buy shares of our Common Stock at different times will likely pay different prices.

Pursuant
to the CEF Purchase Agreement, we will have discretion, subject to market demand, to vary the timing, prices, and numbers of Purchase
Shares sold to Tikkun. If and when we do elect to sell Purchase Shares to Tikkun under the CEF Purchase Agreement, after Tikkun
has acquired such shares, Tikkun may resell all or a portion of such shares at any time or from time to time in its discretion
and at different prices. As a result, investors who purchase shares of our Common Stock from Tikkun at different times will likely
pay different prices for those shares, and so may experience different levels of dilution and in some cases substantial dilution
and different outcomes in their investment results. Investors may experience a decline in the value of the shares they purchase
from Tikkun as a result of future sales made by us to Tikkun at prices lower than the prices such investors paid for their shares.

63 

We
may require additional financing to sustain our operations and, without it, we will not be able to continue operations.

The
extent to which we rely on Tikkun as a source of funding will depend on a number of factors, including the prevailing market price
of our Common Stock and the extent to which we are able to secure working capital from other sources. If obtaining sufficient
funding from Tikkun were to prove unavailable or prohibitively dilutive, we may need to secure another source of funding in order
to satisfy our working capital needs. Even if we were to sell to Tikkun all of the shares of our Common Stock available for sale
to Tikkun under the CEF Purchase Agreement, we will still need additional capital to fully implement our business plan. Should
the financing we require to sustain our working capital needs be unavailable or prohibitively expensive when we require it, the
consequences would be a material adverse effect on our business, operating results, financial condition and prospects.

On
July 24, 2024, we entered into a securities purchase agreement with an accredited investor (the “July Holder”), pursuant
to which the Company issued to the July Holder a senior unsecured convertible note (the “July Note”) in the aggregate
principal amount of $750,000, which is convertible into shares of the Company’s common stock