Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 83

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 83
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 September 30, 2024, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act.
Based on this evaluation, our principal executive officer and principal financial officer concluded that during the periods covered by
this Quarterly Report, our disclosure controls 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.

36

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 September 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 541 shares
of Common Stock. The trial in this matter concluded during October 2025, with a determination not expected until the first quarter of
2026. Regardless of its outcome, the litigation may impact our business due to, among other things, legal costs and the diversion of the
attention of our management.

In
November and December