Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 243

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 243
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 our company and could impair our ability to raise capital,
maintain our research and development efforts, expand our business or continue our operations. A decline in the value of our company
also could cause you to lose all or part of your investment.

Our
business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or our internal control
over financial reporting.

The
design and effectiveness of our disclosure controls and procedures and our internal control over financial reporting may not prevent
all errors, misstatements or misrepresentations. There can be no guarantee that our disclosure controls and procedures and internal
control over financial reporting will be effective in accomplishing all control objectives all of the time. Deficiencies, including
any material weaknesses, in our disclosure controls and procedures or internal control over financial reporting could result in
misstatements of our results of operations or our consolidated financial statements or could otherwise materially and adversely
affect our business, reputation, results of operations, financial condition or liquidity.

31 

We
have identified material weaknesses in our internal control over financial reporting. 

Prior
to our IPO, we were a private company and had limited accounting and financial reporting personnel and other resources with which
to address our internal controls and related procedures. In connection with the audit and review, as applicable, of our consolidated
financial statements for the years ended December 31, 2024 and 2023, we identified material weaknesses in our internal control
over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial
reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial
statements will not be prevented or detected on a timely basis. The material weaknesses in our case arose from inadequate segregation
of duties, ineffective information technology controls and lack of certain financial reporting and transaction processing controls.
If we are unable to remedy our material weaknesses, or if we generally fail to establish and maintain effective internal controls
appropriate for a public company, we may be unable to produce timely and accurate consolidated financial statements, and we may
conclude that our internal control over financial reporting is not effective, which could adversely impact our investors’
confidence and our stock price.

We
will need to raise additional funding to receive approval for CC8464, CT2000, CT3000 or any other future compound. Such funding
may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay,