Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 50

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 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 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, CDT issued a counter statement to the Intellectual Property Office disputing the claim filed by St George Street
Capital. As of June 30, 2025, the range of possible loss cannot be estimated and 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.

Leases

The
Company has a lease agreement with respect to approximately 2,100 square feet of space in Cambridge, England, for a lease term from March 2024 to January 2027. As of June 30, 2025, the Company has a right-of-use asset of $0.2 million and corresponding
lease liability of $0.2 million recorded on the condensed consolidated balance sheets. Of the $0.2 million lease liability, $0.1 million
is classified as short-term and $46,000 is classified as long-term. As of June 30, 2025, the Company has $0.2 million in future
minimum lease payments remaining.

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15.
Segments

The
Company has one operating segment focused on the research and development of clinical assets. The accounting policies of the single operating
segment are identical to those described in Note 1. The Chief Operating Decision Maker (“CODM”), which the Company has identified as Dr. Andrew Regan, Chief Executive Officer,
man