Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 280

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 280
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-practicing entities that have
no relevant product revenue, and against whom our patent portfolio may therefore have no deterrent effect.

Third
parties may initiate legal or administrative proceedings attacking the validity of our patents protecting CC8464, CT2000, CT3000
and future compounds the outcome of which would be uncertain and could have a material adverse effect on the success of our business.

We
may in the future become party to, or be threatened with, adversarial proceedings or litigation regarding intellectual property
rights with respect to CC8464, CT2000, CT3000 or any future compounds, or related technologies, including, for example, interference
proceedings, post grant review challenges, and inter partes review before the USPTO. For example, a third party may bring
an inter partes review challenging our patents and any future patent that may be granted to us. Such proceedings often
are used as a tactic by defendants in a patent litigation suit to threaten a patentee’s patents, both asserted in the litigation
and unasserted. Thus, a competitor, either in response to litigation initiated by us or in the ordinary course, may threaten the
validity, enforceability, and breadth of our patents which could have a negative impact on our business and render our patents
or other intellectual property rights ineffective or insufficient to prevent competition.

Instituting
and defending against patent and other types of intellectual property litigation and administrative proceedings could cause us
to spend substantial resources, distract our personnel from their normal responsibilities, and have uncertain outcomes. 

Patent
and other types of intellectual property litigation and administrative proceedings can involve complex factual and legal questions,
and their outcomes are uncertain. A finding of infringement could prevent us from manufacturing and commercializing our technologies,
including CC8464, CT2000 and CT3000, or force us to cease some or all our business operations. If we are found or believe there
is a risk that we may be found, to infringe a third party’s valid and enforceable intellectual property rights, we could
be required (or may choose) to obtain a license from such a third party to continue developing, manufacturing and marketing our
technologies. However, we may not be able to obtain any required license on commercially reasonable terms, if at all. Even if
we were able to obtain a license, it could be non-exclusive, thereby giving our competitors and other third parties access to
the same technologies licensed to us, and further, it could require us to make substantial licensing