Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 24

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 24
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 prepared using the British pound sterling as the functional currency and then translated into U.S. dollars. We cannot accurately
predict the nature or extent of future exchange rate variability of the British pound sterling or the exchange rate relative to the U.S.
dollar. Foreign exchange rates are sensitive to factors beyond our control. In addition, Brexit has caused, and may continue to cause,
significant volatility in currency exchange rates, especially between the U.S. dollar and the British pound sterling. These fluctuations
in foreign currency exchange rates could negatively affect our results of operations and impact reported financial results.

Our
operating results and liquidity needs could be negatively affected by market fluctuations and economic downturn.

Our
operating results and liquidity could be negatively affected by economic conditions generally, both in the U.S. and elsewhere around
the world. The market for discretionary medical products and procedures may be particularly vulnerable to unfavorable economic conditions.
Some patients may consider certain of our clinical assets to be discretionary, and if full reimbursement for such products is not available,
demand for these products may be tied to the discretionary spending levels of our targeted patient populations. Domestic and international
equity and debt markets have experienced and may continue to experience heightened volatility and turmoil based on domestic and international
economic conditions and concerns. In the event these economic conditions and concerns continue or worsen and the markets continue to
remain volatile, our operating results and liquidity could be adversely affected by those factors in many ways, including weakening demand
for certain of our products and making it more difficult for us to raise funds if necessary. Additionally, although we plan to market
our products primarily in the U.S., we could in the future have partners with extensive global operations, indirectly exposing us to
risk.

We
maintain our cash and cash equivalents with high quality, accredited financial institutions. However, some of these accounts exceed the
government-insured limits, and, while we believe that we are not exposed to significant credit risk due to the financial strength of
these depository institutions or investments, the failure or collapse of one or more of these depository institutions or default on these
investments could materially adversely affect our ability to recover these assets and/or materially harm our financial condition.

45

We
are increasingly dependent on information technology, and our systems and infrastructure face certain risks, including cybersecurity
and data leakage risks.

Significant
disruptions to our information technology systems or breaches of information security could adversely affect our business. In the ordinary
course of business, we collect, store, and transmit large amounts of