Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 88

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 88
---
 property rights. Uncertainties resulting from the initiation and continuation of patent litigation or other proceedings could have a material adverse effect on its ability to compete in the marketplace.

Changes in United States patent law and its administrative and judicial interpretation could diminish the value of patents in general, thereby impairing Channel’s ability to protect its compounds.

Patent reform legislation could increase the uncertainties and costs surrounding the prosecution of patent applications and the enforcement or defense of issued patents. As patent reform legislation can inject serious uncertainty into the patent prosecution and litigation processes, it is not clear what impact future patent reform legislation will have on the operation of Channel’s business. However, such future legislation, and its implementation, could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of any issued patents, all of which could have a material adverse effect on Channel’s business, financial condition, results of operations and prospects.

Moreover, the patent positions of companies engaged in the development and commercialization of pharmaceuticals are particularly uncertain. Channel cannot assure you that its efforts to seek patent protection for CC8464, CT2000, CT3000 and future new compounds will not be negatively impacted by the future court decisions or changes in guidance or procedures issued by the USPTO. These decisions, and any guidance issued by the USPTO (or changes thereto), could have a material adverse effect on its existing patent portfolio and its ability to protect and enforce its intellectual property rights in the future.**

<div align='center'>48</div>

TABLE OF CONTENTS

Intellectual property rights and regulatory exclusivity rights do not necessarily address all potential threats. The degree of future protection afforded by Channel’s intellectual property rights is uncertain because intellectual property rights have limitations and may not adequately protect its business or permit Channel to maintain its competitive advantage. For example:

| • | others may be able to make products that are similar to Channel’s current and future new compound but that are not covered by the claims of its current patents or of patents that Channel may own or license in the future; |

| • | Channel, or any future license partners or collaborators, might not have been the first to file patent applications covering certain aspects of the concerned technologies; |

| • | others may independently develop similar or alternative technologies, or duplicate any of our technologies, potentially without falling within the scope of Channel’s current or future issued claims, thus not infringing its intellectual property rights; |

| • | it is possible that Channel’s filed or future patent applications will not lead to issued patents;