Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 151

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 3
Chunk 151
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, 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 65,000 shares of common stock. As of March 31, 2025, the potential contingency
is considered probable and reasonably estimable and as such, the Company accrued an estimated liability of $0.4 million in the accompanying
financial statements. 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 things, legal costs and the diversion of the attention
of our management.

In
November and December 2024, the Company received a letter from St George Street Capital and formal complaints filed with the Intellectual
Property Office claiming the Company was assigned the US Application, and was not the sole owner, of the AZD 1656 co-crystal patent.
In January 2025, Conduit issued a counter statement to the Intellectual Property Office disputing the claim filed by St George Street
Capital. As of March 31, 2025, the damages sought by St George Street Capital are unknown and the potential contingency is not considered
probable. As such, the Company has not accrued a loss contingency in the accompanying financial statements. We intend to vigorously defend
against these claims. 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.

Item
1A. Risk Factors.

As a smaller reporting company, we are not required to provide information
required by this item.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

No
unregistered sales of equity securities occurred during the quarter ended March 31, 2025 that were not previously reported.

On
April 10, 2025, the Company’s Board of Directors authorized a share repurchase program under which the Company may purchase up
to $1.0 million of its outstanding common stock. As of March 31, 2025, the Company has not repurchased any of its outstanding common
stock.

Item
3. Defaults Upon Senior Securities.

None.

Item
4. Mine Safety Disclosures.

Not
applicable.

Item
5. Other Information.

During the fiscal quarter ended