Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 37

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 37
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 and the information stored there could be accessed, publicly disclosed,
lost, or stolen. Any such access, disclosure, or other loss of information could result in legal claims or proceedings, liability under
laws that protect the privacy of personal information, significant regulatory penalties, disrupt our operations, damage our reputation,
and cause a loss of confidence in us and our ability to conduct clinical trials, which could adversely affect our reputation and delay
our clinical development of our clinical assets. 

We
use artificial intelligence technology in our business, specifically, in relation to our service agreement with Sarborg and
challenges with properly managing such technology could result in reputational harm, competitive harm and legal liability, and
adversely affect our business, financial condition and results of operations.

On
December 12, 2024, we entered into the Sarborg Agreement with Sarborg. Under the terms of the Sarborg Agreement, Sarborg will provide
algorithmic and cybernetic technology services to Conduit, including the development of decision-support tools and advanced cybernetic
systems tailored to enhance Conduit’s decision-making processes and maximize the value of its pharmaceutical asset portfolio.

Sarborg
will perform the services to Conduit comprised of three phases: the Initial Phase (0-24 weeks) focuses on establishing a foundation for
collaboration and aligning Sarborg’s services with Conduit’s strategic goals; the Development Phase (24-36 weeks) involves
building technological infrastructure, including dashboards and predictive models; and the Ongoing Services Phase (36-52 weeks) ensures
the sustained functionality and relevance of Sarborg’s deliverables while supporting Conduit’s growth through iterative improvements
and updates. Sarborg will create specific deliverables, including reports, computer programs, software applications, APIs, mobile applications,
source code, written technical specifications and designs, operating and maintenance manuals, and other recorded data and information
arising from or relating to the services. Sarborg will provide all necessary resources to perform the services and deliver the deliverables
in accordance with the Sarborg Agreement.

To
date, Conduit has successfully completed the Initial Phase of its collaboration with Sarborg, establishing a strong foundation for
integrating AI-driven solutions into our operations. This phase focused on identifying key inputs for the algorithmic approach and
ensuring alignment between Sarborg’s services and Conduit’s strategic goals. As part of this effort, Sarborg has
successfully delivered three key milestones. First, they conducted detailed teach-in sessions with Conduit’s management