Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 96

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 96
---
 of our
products and provision of our services, we must, at times, share trade secrets with them. Despite employing the contractual and
other security precautions described above, the need to share trade secrets increases the risk that such trade secrets become
known by our competitors, are inadvertently incorporated into the technology of others, or are disclosed or used in violation
of these agreements. If any of these events occurs or if we otherwise lose protection for our trade secrets, the value of this
information may be greatly reduced and our competitive position would be harmed. If we do not apply for patent protection prior
to such publication or if we cannot otherwise maintain the confidentiality of our proprietary technology and other confidential
information, then our ability to obtain patent protection or to protect our trade secret information may be jeopardized.

55 

Risks
Related to our Common Stock

The
market price and trading volume of our shares of Common Stock may experience rapid and substantial price volatility, which could
cause purchasers of our Common Stock to incur substantial losses. 

Recently,
the market prices and trading volume of shares of Common Stock of other small publicly traded companies with a limited number
of shares available to purchasers, have experienced rapid and substantial price volatility unrelated to the financial performance
of those companies. Similarly, shares of our Common Stock may experience similar rapid and substantial price volatility unrelated
to our financial performance, which could cause purchasers of our Common Stock to incur substantial losses, which may be unpredictable
and not bear any relationship to our business and financial performance. Extreme fluctuations in the market price of our Common
Stock may occur in response to strong and atypical retail investor interest, including on social media and online forums, the
direct access by retail investors to broadly available trading platforms, the amount and status of short interest in our Common
Stock and our other securities, access to margin debt, trading in options and other derivatives on our shares of Common Stock
and any related hedging and other trading factors.

If
there is extreme market volatility and trading patterns in our Common Stock, it may create several risks for investors, including
the following:

    ●
    the market price
    of our Common Stock may experience rapid and substantial increases or decreases unrelated to our operating performance or
    prospects, or macro or industry fundamentals;

    ●
    if our future market
    capitalization reflects trading dynamics unrelated to our financial performance or prospects, purchasers of our Common Stock
    could incur substantial losses as prices decline once the level of market volatility has abated;

    ●