Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 34

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 34
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 may be invoked against us by third parties. Even if we are successful, domestic or foreign litigation or USPTO or foreign patent
office proceedings may result in substantial costs and distraction to our management. We may not be able, alone or with our licensors
or potential partners, to prevent misappropriation of our proprietary rights, particularly in countries where the laws may not protect
such rights as fully as in the U.S.

Furthermore,
because of the substantial amount of discovery required in connection with intellectual property litigation or other proceedings, there
is a risk that some of our confidential information could be compromised by disclosure during this type of litigation or other proceedings.
In addition, during the course of this kind of litigation or proceedings, there could be public announcements of the results of hearings,
motions, or other interim proceedings or developments or public access to related documents. 

In
addition, 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.
Conduit rejected 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 event the Business Combination is completed, to be issued 65 thousand shares of common stock. We intend to vigorously defend against
these claims. Regardless of its outcome, the litigation may impact our business due to, among other things, defense legal cost and the
diversion of the attention of our management. 

50

Our
reliance on third parties requires us to share our trade secrets, which increases the possibility that our trade secrets will be misappropriated
or disclosed, and confidentiality agreements with employees and third parties may not adequately prevent disclosure of trade secrets
and protect other proprietary information.

We
consider proprietary trade secrets or confidential know-how and unpatented know-how to be important to our business. We may rely on trade
secrets or confidential know-how to protect our technology, especially where we believe that patent protection is of limited value.

To
protect this type of information against disclosure or appropriation by competitors, our policy is to require our employees, consultants,
collaborators, contractors, and advisors to enter into confidentiality agreements and, if applicable, material transfer agreements, consulting
agreements