Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 71

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 and procedures were not effective, due to material weaknesses
previously identified and included in the Company’s most recent Form 10-K as not yet remediated as of the end of both such
periods.

Changes
in Internal Control over Financial Reporting

There
have been no changes to in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of
the Exchange Act) during the most recent fiscal quarter.

On
April 12, 2025, Dr. David Tapolczay’s resignation as Chief Executive Officer of the Company became effective. Dr. Tapolczay’s
resignation was not due to any disagreement with management or the Company’s operations, policies or practices. Effective April
15, 2025, the Board appointed Dr. Andrew Regan, as Chief Executive Officer.

41

PART
II - OTHER INFORMATION

Item
1. Legal Proceedings.

The
Company is subject to certain claims and contingent liabilities that arise in the normal course of business. While we do not expect that
the ultimate resolution of any of these pending actions will have a material effect on our consolidated results of operations, financial
position or cash flows, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action,
does not become material in the future. As of June 30, 2025, a contingency of $0.4 million is considered probable and reasonably estimable
in relation to the Company’s legal proceedings. As such, the Company accrued an estimated liability in the accompanying financial
statements.

In August 2023, prior to the Business Combination, our now wholly-owned
subsidiary, Conduit Pharmaceuticals Limited, received a letter from Strand Hanson Limited (“Strand”) claiming it was owed
advisory fees pursuant to a previously executed letter. CDT rejected the claim from Strand and disputed the substance of the letter in
full. Following such rejection, on September 7, 2023, Strand filed a claim in the Business and Property Courts of England and Wales claiming
it is entitled to be paid the sum of $2 million and, as a result of the completion of the Business Combination, to be issued 4,333 shares
of Common Stock. The trial in this matter remains scheduled for October 20, 2025. We intend to vigorously defend against these claims.
Regardless of its outcome, the litigation may impact our business due to, among other