Company: PTHS
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001753926-25-000652
Chunk: 9

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-04-17
Form: 8-K
Item: Item 1.01
Chunk 9
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 the approval of Channel’s Board of Directors, CBIZ
was engaged as Channel’s independent registered public accounting firm.

Marcum’s report on Channel’s
consolidated financial statements for the fiscal years ended December 31, 2024 and 2023 did not contain an adverse opinion or a
disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

During the fiscal years ended December
31, 2024 and 2023, and through April 11, 2025, the date of Marcum’s resignation, there were (a) no disagreements (as defined
in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) with Marcum on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to Marcum’s satisfaction,
would have caused Marcum to make reference to the subject matter of the disagreement in connection with its reports on Channel’s
consolidated financial statements for such periods and (b) no “reportable events” (as defined in Item 304(a)(1)(v)
of Regulation S-K and the related instructions), except for the previously disclosed identification of material weaknesses in Channel’s
internal control over financial reporting, including: (i) Channel lacked 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; (ii) Channel
lacked the ability to provide multiple levels of review in connection with the financial reporting process, which means it cannot
be ensured that Channel is meeting certain financial reporting and transaction processing controls standards and (iii) Channel
lacked the necessary internal IT infrastructure to ensure proper IT general controls, additionally, Channel is reliant on third-party
software for its financial systems and cannot ensure there are no vulnerabilities in these systems.

Prior to engaging CBIZ, Channel did not
consult with CBIZ regarding the application of accounting principles to a specific completed or contemplated transaction or regarding
the type of audit opinions that might be rendered by CBIZ on Channel’s consolidated financial statements, and CBIZ did not
provide any written or oral advice that was an important factor considered by Channel in reaching a decision as to any such accounting,
auditing, or financial reporting issue.

Channel provided Marcum with a copy of
this Current Report on Form 8-K prior to its filing with the SEC and requested that Marcum furnish Channel with a letter addressed
to