Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 301

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 301
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 to defense and settlement costs, diversion of management resources,
negative publicity and reputation harm, and other factors.

Demand
Letter from Mr. Kopfli’s Attorney

On
February 14, 2024, our board of directors received a demand letter from an attorney representing Chromocell Holdings and our former
Chief Executive Officer and former Chief Strategy Officer, Mr. Christian Kopfli, who was released for “cause” as disclosed
elsewhere in this Report. Mr. Kopfli alleged an improper termination for “cause” and claimed to seek monetary damages
in the amount of $479,169. Of the $479,169 asserted by Mr. Kopfli, as of December 31,
2024, the Company had accrued $363,091 in compensation expenses associated with Mr. Kopfli’s prior employment with the Company.
However, the Company believed the assertions made by Mr. Kopfli were without merit and commenced the New York Action against Mr.
Kopfli and Chromocell Holdings, asserting causes of action against Mr. Kopfli
for breach of the Employment Agreement entered into on January 10, 2023 between the Company and Mr. Kopfli, breach of fiduciary
duty by Mr. Kopfli, as well as breach of contract against Chromocell Holdings. The Company also asserted a “faithless servant”
claim against Mr. Kopfli, seeking a ruling that Mr. Kopfli was not entitled to compensation from the Company. The Company sought
monetary damages against Mr. Kopfli and Chromocell Holdings in the New York Action, plus disgorgement of all compensation previously
paid or accrued to Mr. Kopfli by the Company.

By
Order dated October 3, 2024, the court in the New York Action awarded the Company a default judgment against Mr. Kopfli and Chromocell
Holdings on all claims and ordered an assessment of damages against Mr. Kopfli and Chromocell Holdings (to be held at a date to
be determined). As of December 31, 2024, the Company has removed the accrual of $363,091 in compensation expenses and recorded
a gain on default judgement in the same amount. 

Parexel
Claim 

On
July 31, 2024, the Company received a demand letter from an attorney representing Parexel.  The letter, which was addressed
to both the Company and Chrom