Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 648

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 648
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 income taxes paid to enhance the transparency and decision
usefulness of income tax disclosures. This ASU will be effective for the annual periods beginning after December 15, 2024. The
Company is currently evaluating the impacts of adoption of this ASU.

    F-12 

In
November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,”
which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant
segment expenses. The purpose of the amendment is to enable investors to better understand an entity’s overall performance
and assess potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023, and interim
periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively
to all prior periods presented in the consolidated financial statements. The Company adopted this ASU in 2024, see Note 9.

NOTE
4 – RELATED PARTY TRANSACTIONS

Employment
Agreement

On
February 14, 2024, the board of directors of the Company (the “Board”) received a demand letter from an attorney
representing Chromocell Holdings and Christian Kopfli, the Company’s former Chief Executive Officer and former Chief Strategy
Officer. Mr. Kopfli alleged an improper termination for “cause” and claimed to seek monetary damages in the amount
of $479,169. Of the $479,169 asserted by Mr. Kopfli, as of December 31, 2024, the Company had accrued $363,091 in compensation
expenses associated with Mr. Kopfli’s prior employment with the Company.  However, the Company believed the assertions
made by Mr. Kopfli were without merit and commenced a lawsuit against Mr. Kopfli and Chromocell Holdings in the Supreme Court
for the State of New York, County of New York on June 7, 2024 (Index No. 652917/2024, the “New York Action”), asserting
causes of action against Mr. Kopfli for breach of the Employment Agreement entered into on January 10, 2023 between the Company
and Mr. Kopfli, breach of fiduciary duty by Mr. Kopfli, as well as breach of contract against Chromocell Holdings in connection