Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 108

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 4
Chunk 108
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 time, we may be involved in legal proceedings arising in the ordinary course of our business. We are not presently a party
to any legal proceedings that, in the opinion of our management, would have a material adverse effect on our business. Regardless
of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources,
negative publicity and reputation harm, and other factors.

On
July 31, 2024, the Company received a demand letter from an attorney representing Parexel International (IRL) Limited (“Parexel”).
 The letter, which was addressed to both the Company and Chromocell Holdings, purports to be a notice of default of
the Promissory Note between Chromocell Holdings and Parexel and seeks the payment of allegedly unpaid principal
in the amount of $682,551 plus interest exceeding $177,000.  The Company denies that it is liable for any of the amounts
sought by Parexel; the Company is not a party to the Promissory Note and does not believe it is liable for any
amounts allegedly due thereunder. 

Item
1A. Risk Factors

As
a smaller reporting company, the Company is not required to include the disclosure required under this Item 1A.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent
Sales of Unregistered Securities  

On
January 23, 2025, the Company agreed to issue 25,000 shares of Common Stock to a vendor in consideration for the services provided
by the vendor to the Company.

The
offers and sales of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon
Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the
Securities Act, as transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating
to compensation as provided under Rule 701. The recipients of the above securities represented their intentions to acquire the
securities for investment only and not with a view to or for sale in connection with any distribution thereof.

Purchases
of Equity Securities by the Issuer and Affiliated Purchasers

Stock
Repurchase Plan:

On
August 5, 2024, the board of directors authorized a stock repurchase plan (