Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 476

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 476
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ilutive Securities 
     1,501,298  
     173,322 

15.
Commitments and Contingencies

Legal
Proceedings

The
Company is subject to certain claims and contingent liabilities that arise in the normal course of business. While we do not expect that
the ultimate resolution of any of these pending actions will have a material effect on our consolidated results of operations, financial
position or cash flows, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action,
does not become material in the future.

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 the claim from Strand 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 completion of the Business Combination, to be issued 65
thousand shares of common stock. As of December 31, 2024, 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 December 31, 2024, 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