Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 268

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 268
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, along with CT2000 and CT3000, which
were derived from CC8464, was discovered in our labs using our technologies. Research programs to identify new compounds will
require to invest substantial technical, financial and human resources. We may fail to identify other potential compounds for
clinical development for several reasons. For example, our research may be unsuccessful in identifying potential compounds or
our potential compounds may be shown to have harmful side effects, may be commercially impracticable to manufacture or may have
other characteristics that may make the products unmarketable or unlikely to receive marketing approval.

Additionally,
because we have limited resources, we may forego or delay pursuit of opportunities with certain programs or compounds or for indications
that later prove to have greater commercial potential. Our spending on current and future research and development programs may
not yield any commercially viable products. If we do not accurately evaluate the commercial potential for a particular compound,
we may relinquish valuable rights to that compound through strategic collaboration, licensing or other arrangements in cases in
which it would have been more advantageous for us to retain sole development and commercialization rights to such compound. Alternatively,
we may allocate internal resources to a compound in a therapeutic area in which it would have been more advantageous to enter
into a partnering arrangement.

46 

If
any of these events occur, we may be forced to abandon our development efforts with respect to a particular compound or fail to
develop a potentially successful compound, which could have a material adverse effect on our business, financial condition, results
of operations and prospects.

If
we are unable to manage expected growth in the scale and complexity of our operations, our performance may suffer.

If
we are successful in executing our business strategy, we will need to expand our managerial, operational, financial and other
systems and resources to manage our operations, continue our research and development activities and, in the longer term, build
a commercial infrastructure to support commercialization of any of our compounds that are approved for sale. Future growth would
impose significant added responsibilities on members of management. It is likely that our management, finance, development personnel,
systems and facilities currently in place may not be adequate to support this future growth. Our need to effectively manage our
operations, growth and our compounds requires that we continue to develop more robust business processes and improve our systems
and procedures in each of these areas and to attract and retain enough numbers of talented employees. We may be unable to successfully
implement these tasks on a larger scale and, accordingly, may