What is neutralized lactic acid?

Hi BBs!

I spotted a moisturizer that is supposed to help with keratosis pilaris; Lac-Hydrin 12.

I’m confused as to how it works though, the bottle says in big letters that it is an AHA lotion, but it says it contains ammonium lactate. How is it supposed to exfoliate the skin if it’s not not even an acid? What is neutralized lactic acid and does it have any of the benefits of actual lactic acid? Why would the manufacturer chose to neutralize it, I’m baffled.

I can’t find much online. I noticed Paula’s Choice Beutypedia is not to impressed, giving it 3/5 stars but I don’t really trust them because they’re always trying to push their own products. Do you think this product any good for someone with severely dry and itchy skin with KP?

medicinal ingredient: neutralized lactic acid 12% w/w
non-medicinal ingredients: Ammonium hydroxide, cetyl alcohol, fragrance, glycerin, glyceryl stearate/ PEG-100 stearate, laureth-4, magnesium aluminum silicate, methylcellulose, methylparaben, mineral oil, PEG-40 stearate, propylene glycol, propylparaben, water.

Thanks guys! You’re the best.