Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 86

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 86
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 market conditions could adversely impact our business.

Adverse
developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults or non-performance
by financial institutions or transactional counterparties, could adversely affect our current and projected business operations
and financial condition and results of operations. 

Events
involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional
counterparties or other companies in the financial services industry or the financial services industry generally or concerns
or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity
problems. For example, on March 10, 2023, Silicon Valley Bank (“SVB”) was closed by the California Department of Financial
Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver. Similarly,
on March 12, 2023, Signature Bank and Silvergate Capital Corp. were each swept into receivership. Although a statement by the
Department of the Treasury, the Federal Reserve and the FDIC indicated that all depositors of SVB would have access to all of
their money after only one business day of closure, including funds held in uninsured deposit accounts, borrowers under credit
agreements, letters of credit and certain other financial instruments with SVB, Signature Bank or any other financial institution
that is placed into receivership by the FDIC may be unable to access undrawn amounts thereunder.

Although
we regularly assess our banking relationships and the location of the assets held in the company’s account as we believe
necessary or appropriate, our access to funding sources and other credit arrangements could be significantly impaired by factors
that affect the financial services industry or economy in general. These factors could include, among others, events such as liquidity
constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or
arrangements, disruptions or instability in the financial services industry. 

Our
internal computer systems, or those of our collaborators or other contractors or consultants, may fail or suffer security breaches,
which could result in a material disruption of our product development programs.

Our
internal computer systems and those of our current and any future collaborators and other contractors or consultants are vulnerable
to damage from computer viruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures.

While
we have not experienced any such material system failure, accident or security breach to date, if