Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 165

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 165
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, Ligand, has product liability insurance that covers**

<div align='center'>90</div>

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**its clinical trials up to a $15.0 million annual limit. LNHC’s insurance coverage may not be sufficient to cover all of LNHC’s product liability-related expenses or losses and may not cover it for any expenses or losses it may suffer. If LNHC is sued for any injury caused by its product candidates, partnered products or any future products, its liability could exceed its total assets.

LNHC faces risks related to handling of hazardous materials and other regulations governing environmental safety.

LNHC’s operations are subject to complex and stringent environmental, health, safety and other governmental laws and regulations that both public officials and private individuals may seek to enforce. LNHC’s activities that are subject to these regulations include, among other things, LNHC’s use of hazardous materials and the generation, transportation and storage of waste. Although LNHC has secured clearance from the EPA historically, and currently is operating in material compliance with applicable EPA rules and regulations, LNHC’s business could be adversely affected if it discovers that it or an acquired business is not in material compliance with these rules and regulations. In the future, LNHC may pursue the use of other surfactant substances that will require clearance from the EPA, and it may fail to obtain such clearance. Existing laws and regulations may also be revised or reinterpreted, or new laws and regulations may become applicable to LNHC, whether retroactively or prospectively, that may have a negative effect on its business and results of operations. It is also impossible to eliminate completely the risk of accidental environmental contamination or injury to individuals. In such an event, LNHC could be liable for any damages that result, which could adversely affect its business.**

**LNHC may also be subject to other laws and regulations not specifically targeting the healthcare industry.**

Certain regulations not specifically targeting the healthcare industry also could have material effects on LNHC’s operations. For example, the California Financing Law (“CFL”), Division 9, Sections 22000-22780.1 of the California Financial Code, could be applied to LNHC as a result of loans or similar arrangements LNHC enters into with partners. If a regulator were to take the position that such loans were covered by the California Financing Law, LNHC could be subject to regulatory action that could impair its ability to continue to operate and may have a material adverse effect on its profitability and business as it currently does not hold a CFL finance lenders license.