Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 87

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 87
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 may choose) to obtain a license from such a third party to continue developing, manufacturing and marketing its technologies. However, Channel may not be able to obtain any required license on commercially reasonable terms, if at all. Even if Channel was able to obtain a license, it could be non-exclusive, thereby giving our competitors and other third parties access to the same technologies licensed to it, and further, it could require Channel to make substantial licensing and royalty payments. Channel could be forced, including by court order, to cease developing, manufacturing and commercializing the infringing technologies, including CC8464, CT2000 and CT3000. Channel also could be found liable for monetary damages, including treble damages and attorneys’ fees if Channel is found to have willfully infringed a patent or other intellectual property right. Claims that Channel has misappropriated the confidential information or trade secrets of third parties could have a similar negative impact on its business, financial condition, results of operations and prospects.

Litigation or other legal or administrative proceedings relating to intellectual property claims, with or without merit, is unpredictable and generally expensive and time consuming. Competitors may infringe Channel’s current or future patents, should such patents issue, or Channel may be required to defend against claims of infringement or other unauthorized use of third-party intellectual property or third-party attacks against its intellectual property rights. Even if resolved in its favor, litigation or other legal proceedings relating to intellectual property may cause it to incur significant expenses and could distract its scientific and management personnel from their normal responsibilities. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation and administrative proceedings, there is a risk that some of Channel’s confidential information could be compromised by disclosure during this type of litigation despite its attempts to prevent such disclosure. In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments and, if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of Channel common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing, or distribution activities.

Channel may not have sufficient financial or other resources to adequately conduct such litigation or proceedings. Some of its competitors may be able to sustain the costs of such litigation or proceedings more effectively than it can because of their greater financial resources. Accordingly, despite Channel’s efforts, it may not be able to prevent third parties from infringing, misappropriating, or successfully challenging its intellectual