Company: PTHS
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001753926-25-000790
Chunk: 4

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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 conditions in the U.S. and worldwide along with local, state, and
federal governmental policy decisions. A host of factors beyond the Company’s control could cause fluctuations in these
conditions. Adverse conditions may include changes in the biotechnology regulatory environment, technological advances that render
the Company’s technologies obsolete, availability of resources for clinical trials, acceptance of technologies into the
medical community, and competition from larger, more well-funded companies.

Initial
Public Offering

On
February 21, 2024, the Company completed the initial public offering of its Common Stock (the “IPO”) and issued 1,100,000 shares
of its Common Stock at a price of $6.00 per share. The aggregate net proceeds from the IPO were approximately $5.7 million after
deducting $0.9 million in underwriting discounts and commissions and offering expenses.

    6

Reincorporation
Merger and Name Change

On
October 22, 2024, the affirmative vote of a majority of the outstanding shares of Common Stock present in person, by remote communication,
if applicable, or represented by proxy at the Annual Meeting approved the Reincorporation Merger. The Reincorporation Merger occurred
on November 18, 2024.

NOTE
2 – LIQUIDITY AND GOING CONCERN

A
fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will
continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement
of liabilities occurring in the ordinary course of business. In accordance with this requirement, the Company has prepared its
accompanying consolidated financial statements assuming the Company will continue as a going concern.

During
the three months ended March 31, 2025, the Company had a net loss of approximately $2.0 million. As of March 31, 2025, the
Company has cash of approximately $0.1 million and a working capital deficit $4.2 million. 

Based
on the Company’s current projections, management believes there is substantial doubt about its ability to continue to operate
as a going concern and fund its operations through at least the next twelve months following the issuance of these consolidated
financial statements. While the Company will continue to invest in its business and the development of CC8464, CT2000, and CT3000,
and potentially