Company: CDT
Filing Date: 2025-02-14
Form Type: 424B3
Source: 0001493152-25-006960
Chunk: 12

Company: CDT Equity Inc.
Filing Date: 2025-02-14
Form: 424B3
Chunk 12
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 to the preparation of our financial statements:

| ● | We                                                                                                                                   
 have limited segregation of duties. For the periods under audit, Old Conduit did not have any internal personnel in the financial    
 accounting and reporting department, instead relied upon third party consultants to perform these activities.                        |
| ● | We                                                                                                                                   
 lack a formal process for review and approval of financial statements. For the periods under audit, especially prior to the Business 
 Combination, numerous, recurring errors in account balances and disclosures were detected in the financial statements that resulted  
 in a reasonable possibility that a material misstatement would not have been detected on a timely basis.                             |
| ● | We                                                                                                                                   
 did not design adequate and appropriate internal controls under an appropriate internal control over financial reporting framework,  
 including monitoring controls and certain entity level controls.                                                                     |
| ● | We                                                                                                                                   
 did not appropriately review and evaluate the accounting implications of all material transactions that occurred in the audit period 
 which resulted in a restatement for previous periods.                                                                                |

If these material weaknesses are not remediated, it could result in a misstatement of account balances or disclosures that would result in a material misstatement to the annual or interim financial statements that would not be prevented or detected. We are implementing measures designed to improve our internal control over financial reporting to remediate these material weaknesses, although they have not been fully remediated as of the date of this prospectus.

| 8 |

The material weaknesses will not be considered remediated until our remediation plan has been fully implemented, the applicable controls operate for a sufficient period of time, and we have concluded, through testing, that the newly implemented and enhanced controls are operating effectively. We currently do not have the financial resources to establish and implement a remediation plan. The Company expects commence a remediation plan once such financial resources are available by documenting and implementing such plan, followed with testing such controls over time. We cannot predict the success of such efforts or the outcome of its assessment of any such remediation efforts. Once undertaken, our efforts may not remediate these material weaknesses in our internal control over financial reporting, or additional material weaknesses may be identified in the future. A failure to implement and maintain effective internal control over financial reporting could result in errors in our financial statements that could result in a restatement of our financial statements and could cause us to fail to meet our reporting obligations, any of which could diminish investor confidence in us and cause a decline in the price of our Common Stock.

Our independent registered public accounting firm will not be required