Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 579

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 579
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 timely decisions regarding required
disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures,
no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met,
and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a
company have been detected. Based on the evaluation of our disclosure controls and procedures as of December 31, 2024, our Chief
Executive Officer and our Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were
not effective.

Management
identified the following material weaknesses:

    1.
    We lack
    the necessary corporate accounting resources to maintain adequate segregation of duties. Such a lack of segregation of duties
    is typical in a company with limited resources.

    2.
    We lack the ability
    to provide multiple levels of review in connection with the financial reporting process, which means that we cannot ensure
    that we are meeting certain financial reporting and transaction processing controls standards.

    3.
    We lack the necessary
    internal IT infrastructure to ensure proper IT general controls. Additionally, we are reliant on third-party software for
    our financial systems and cannot ensure there are no vulnerabilities in these systems.

Management’s
Report on Internal Control over Financial Reporting 

This
Report does not include a report of management’s assessment regarding internal control over financial reporting or an attestation
report of the Company’s registered public accounting firm due to a transition period established by rules of the SEC for
newly public companies. Additionally, our auditors will not be required to formally opine on the effectiveness of our internal
control over financial reporting pursuant to Section 404 until we are no longer an “emerging growth company” as defined
in the JOBS Act.

81 

Changes
in Internal Control over Financial Reporting 

There
were no changes in the Company’s internal control over financial reporting during the year ended December 31, 2024,
that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial
reporting.

Item
9B. Other Information

During
the three months ended December 31, 2024, none of our directors and officers adopted or terminated a “Rule 10b5-1 trading
arrangement” or “non-Rule 10b5-1 trading arrangement”, as each term is defined in Item 408(a) of Regulation
S