Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 293

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 293
---
 any other new compounds that we may develop. Pending their use, we
may invest our cash in a manner that does not produce income or that loses value.

Raising
additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights
to our technologies, CC8464, CT2000 and CT3000.

We
may seek additional capital through a combination of draw-downs under the CEF Purchase Agreement, public and private equity offerings,
debt financings, collaborations and licensing arrangements. To the extent that we raise additional capital through the sale of
equity or debt securities, your ownership interest will be diluted, and the terms may include liquidation or other preferences
that adversely affect your rights as a stockholder. The incurrence of indebtedness would result in increased fixed payment obligations
and could involve restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our ability
to acquire or license intellectual property rights and other operating restrictions that could adversely impact our ability to
conduct our business. If we raise additional funds through strategic partnerships and alliances and licensing arrangements with
third parties, we may have to relinquish valuable rights to our technologies, CC8464, CT2000 and CT3000 or grant licenses on terms
unfavorable to us.

We
are an “emerging growth company” and the reduced disclosure requirements applicable to emerging growth companies may
make our Common Stock less attractive to investors.

We
are an “emerging growth company,” as defined in the JOBS Act, and we may take advantage of certain exemptions and
relief from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.”
In particular, while we are an “emerging growth company: (i) we will not be required to comply with the auditor attestation
requirements of Section 404(b) of the Sarbanes-Oxley Act; (ii) we will be exempt from any rules that may be adopted by the Public
Company Accounting Oversight Board requiring mandatory audit firm rotations or a supplement to the auditor’s report on financial
statements; (iii) we will be subject to reduced disclosure obligations regarding executive compensation in our periodic reports
and proxy statements; and (iv) we will not be required to hold nonbinding advisory votes on executive compensation or stockholder
approval of any golden parachute payments not previously approved. Investors may find our Common Stock less attractive if we rely
on the exemptions and relief granted by