Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 106

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 106
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 systems and resources.

As
a result of disclosure of information in this Annual Report on Form 10-K and in filings required of a public company, our
business and financial condition is more visible, which we believe may result in threatened or actual litigation, including by
competitors and other third parties. If such claims are successful, our business and operating results could be harmed, and even
if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to
resolve them, could divert resources of our management and harm our business and operating results.

Because
we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will
be your sole source of gain.

We
have never declared or paid cash dividends on our capital stock. We currently intend to retain all of our future earnings, if
any, to finance the growth and development of our business. In addition, the terms of any future debt agreements may preclude
us from paying dividends. As a result, capital appreciation, if any, of our Common Stock will be your sole source of gain for
the foreseeable future.

Risks
Related to our CEF Purchase Agreement

It
is not possible to predict the actual number of Purchase Shares we will sell under the CEF Purchase Agreement, or the actual gross
proceeds resulting from those sales. We may not have access to the full amount available under the CEF Purchase Agreement with
Tikkun.

On
July 26, 2024, we entered into the CEF Purchase Agreement (the “CEF Purchase Agreement”) with Tikkun Capital LLC (“Tikkun”),
pursuant to which Tikkun committed to purchase up to $30.0 million in shares of our Common Stock, subject to certain limitations
and conditions set forth in the CEF Purchase Agreement.

The
shares of Common Stock that may be issued under the CEF Purchase Agreement (the “Purchase Shares”) may be sold by
us to Tikkun at our discretion from time to time until July 26, 2026, commencing after the satisfaction of certain conditions
set forth in the CEF Purchase Agreement, including a registration statement covering the resale of shares of Common Stock that
may be issued under the CEF Purchase Agreement is declared effective by the SEC, a final prospectus in connection therewith is
filed, and the other conditions set forth in the CEF Purchase Agreement are satisfied