Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 102

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 102
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 not filed a registration statement in connection with the Bridge Financings, and the investors that participated in the Bridge
Financings have not objected to the fact that the Company has not filed such registration statement nor have they requested the
payment of partial liquidated damages pursuant to the terms of the Bridge Documents.

In
connection with the CEF Purchase Agreement, we filed a registration statement, providing for the resale of the shares of Common
Stock issuable pursuant to the CEF Purchase Agreement. In the future, we may issue additional shares of Common Stock or other
equity or debt securities convertible into Common Stock in connection with draw-downs under the CEF Purchase Agreement, a financing,
acquisition, litigation settlement or employee arrangement or otherwise. Any of these issuances could result in substantial dilution
to our existing stockholders and could cause the trading price of our securities to decline.

The
Series C Preferred Stock has a liquidation preference over our Common Stock.

The
Series C Preferred Stock has a liquidation preference that gets paid prior to any payment on our Common Stock. As a result, if
we were to liquidate, dissolve or wind-up, each holder of our Series C Preferred Stock would have the right to receive payment
out of our assets available for distribution, before any amount is paid to the holders of our Common Stock, in an amount in cash
equal to the aggregate liquidation value of all of the shares of preferred stock held by such holder. Holders of the Series C
Preferred Stock will not be entitled to dividends. The payment of the liquidation preferences on the Series C Preferred Stock
could result in holders of our Common Stock not receiving any proceeds if we were to liquidate, dissolve or wind up, either voluntarily
or involuntarily.

59 

The
existence of the liquidation preferences may reduce the value of our Common Stock, make it harder for us to sell shares of Common
Stock in offerings in the future, or prevent or delay a change of control.

If
securities analysts do not publish research or reports about our business or if they publish negative evaluations of our stock,
the price of our stock could decline.

The
trading market for our Common Stock relies, in part, on the research and reports that industry or financial analysts publish about
us or our business. If securities analysts do not commence coverage of us, the trading price of our stock could decrease. Additionally,
if one or more of the analysts covering our business downgrade their evaluations of our stock, the price of