Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 246

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 246
---
 cash flows, if any, being dedicated to the payment
of principal and interest on such indebtedness, and we may be required to agree to certain restrictive covenants, such as limitations
on our ability to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and
other operating restrictions that could adversely impact our ability to conduct our business. Furthermore, existing securityholders
may not agree with our financing plans or the terms of such financings. Adequate additional financing may not be available to
us on acceptable terms, or at all. The terms of additional financing may be impacted by, among other things, general market conditions,
and the market’s perception of future compounds. If adequate funds are not available, we may be required to curtail our
operations or other business activities or obtain funds through arrangements with strategic partners or others that may require
us to relinquish rights to certain technologies or potential markets.

We
may be subject to litigation for a variety of claims, which could adversely affect our results of operations, harm our reputation
or otherwise negatively impact our business.

We
may be subject to litigation for a variety of claims arising from our normal business activities. These may include claims, suits,
and proceedings involving labor and employment, wage and hour, commercial and other matters. The outcome of any litigation, regardless
of its merits, is inherently uncertain. Any claims and lawsuits, and the disposition of such claims and lawsuits, could be time-consuming
and expensive to resolve, divert management attention and resources, and lead to attempts on the part of other parties to pursue
similar claims. Any adverse determination related to litigation could adversely affect our results of operations, harm our reputation
or otherwise negatively impact our business. In addition, depending on the nature and timing of any such dispute, a resolution
of a legal matter could materially affect our future operating results, our cash flows or both.

33 

Risks
Related to Development, Clinical Testing, and Regulatory Approval

We
are early in our efforts to develop CC8464, which is the only compound that we have advanced into clinical development. If we
are unable to advance CC8464 through clinical trials, obtain regulatory approval and ultimately commercialize CC8464, or if we
experience significant delays in doing so, our business will be materially harmed.

We
are early in our development of CC8464. The development and commercialization of CC8464 (or any other compound that we may advance
towards clinical development in the future)