Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 107

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 107
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. We generally have the right to control
the timing and amount of any sales of Purchase Shares to Tikkun under the CEF Purchase Agreement. Sales of Purchase Shares to
Tikkun under the CEF Purchase Agreement will depend upon market conditions and other factors to be determined by us. We may ultimately
decide to sell to Tikkun all or a portion of the Purchase Shares that may be available pursuant to the CEF Purchase Agreement.

Because
the purchase price per share to be paid by Tikkun for the Purchase Shares that we may elect to sell to Tikkun under the CEF Purchase
Agreement will fluctuate based on the market prices of our Common Stock during the applicable volume weighted average price purchase
valuation period for each purchase, it is not possible for us to predict the total number of Purchase Shares that we will sell
to Tikkun under the CEF Purchase Agreement, the purchase price per share that Tikkun will pay for shares purchased from us under
the CEF Purchase Agreement, or the aggregate gross proceeds that we will receive from those purchases by Tikkun under the CEF
Purchase Agreement.

62 

Although
the CEF Purchase Agreement provides that we may sell up to an aggregate of $30.0 million of Purchase Shares to Tikkun, only 2,000,000
Purchase Shares are being registered for resale by Tikkun under the registration statement on Form S-1 filed with the SEC on July
29, 2024, which we may elect to sell to Tikkun, in our sole discretion, from time to time from and after the Commencement Date
under the CEF Purchase Agreement.

If
after the Commencement Date, we elect to sell to Tikkun all of the 2,000,000 Purchase Shares being registered for resale under
the prospectus in the registration statement on Form S-1 filed with the SEC on July 29, 2024, that are available for sale by us
to Tikkun in purchases under the CEF Purchase Agreement, depending on the market prices of our Common Stock during the applicable
volume weighted average price purchase valuation period for each purchase made pursuant to the CEF Purchase Agreement, the actual
gross proceeds from the sale of all such shares may be substantially less than the $30.0 million (the “Total Commitment”)
available to us under the CEF Purchase Agreement, which could materially adversely affect our liquidity.

If
it becomes necessary for us to issue