Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 285

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 285
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 information may be jeopardized.

55 

Risks
Related to our Common Stock

The
market price and trading volume of our shares of Common Stock may experience rapid and substantial price volatility, which could
cause purchasers of our Common Stock to incur substantial losses. 

Recently,
the market prices and trading volume of shares of Common Stock of other small publicly traded companies with a limited number
of shares available to purchasers, have experienced rapid and substantial price volatility unrelated to the financial performance
of those companies. Similarly, shares of our Common Stock may experience similar rapid and substantial price volatility unrelated
to our financial performance, which could cause purchasers of our Common Stock to incur substantial losses, which may be unpredictable
and not bear any relationship to our business and financial performance. Extreme fluctuations in the market price of our Common
Stock may occur in response to strong and atypical retail investor interest, including on social media and online forums, the
direct access by retail investors to broadly available trading platforms, the amount and status of short interest in our Common
Stock and our other securities, access to margin debt, trading in options and other derivatives on our shares of Common Stock
and any related hedging and other trading factors.

If
there is extreme market volatility and trading patterns in our Common Stock, it may create several risks for investors, including
the following:

    ●
    the market price
    of our Common Stock may experience rapid and substantial increases or decreases unrelated to our operating performance or
    prospects, or macro or industry fundamentals;

    ●
    if our future market
    capitalization reflects trading dynamics unrelated to our financial performance or prospects, purchasers of our Common Stock
    could incur substantial losses as prices decline once the level of market volatility has abated;

    ●
    if the future market
    price of our Common Stock declines, purchasers of shares of Common Stock may be unable to resell such shares at or above the
    price at which they acquired them. We cannot assure such purchasers that the market of our Common Stock will not fluctuate
    or decline significantly in the future, in which case investors could incur substantial losses.

Further,
we may incur rapid and substantial increases or decreases in our Common Stock price in the foreseeable future that may not coincide
in timing with the disclosure of news or developments by or affecting us. Accordingly, the market price of our Common Stock may
fluctuate dramatically, and may decline rapidly, regardless of any developments in our business. Overall, there are various factors,
many of which