Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 40

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 40
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standard of greater than $1.0 million and the Company believes it will be able to demonstrate its compliance with the Equity
Standard of Stockholder’s Equity greater than $2.5 million prior to the March 31, 2025, deadline to the satisfaction of
Nasdaq, although no such assurance can be given. The inability to comply with Nasdaq’s continued requirements or standards
could result in the delisting of our common stock, which could have a material adverse effect on our financial condition and could
cause the value of the common stock to decline.

If
our common stock were to be delisted from trading on The Nasdaq Global Market and the trading price of our common stock were below $5.00
per share on the date the common stock is delisted, trading in our common stock would also be subject to the requirements of certain
rules promulgated under the Exchange Act. These rules require additional disclosure by broker-dealers in connection with any trades involving
a stock defined as a “penny stock” and impose various sales practice requirements on broker-dealers who sell penny stocks
to persons other than established customers and accredited investors, generally institutions. These additional requirements may discourage
broker-dealers from effecting transactions in securities that are classified as penny stocks, which could severely limit the market price
and liquidity of such securities and the ability of purchasers to sell such securities in the secondary market. A penny stock is defined
generally as any non-exchange listed equity security that has a market price of less than $5.00 per share, subject to certain exceptions.

We
do not anticipate paying any dividends in the foreseeable future.

The
current expectation is that we will retain our future earnings to fund the development and growth of our business. As a result, capital
appreciation, if any, of the shares of our common stock will stockholders’ sole source of gain, if any, for the foreseeable future.

52

Our
Second Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) provides, subject to limited
exceptions, that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for certain stockholder litigation
matters, which could limit our stockholders’ ability to obtain a chosen judicial forum for disputes with us or our directors, officers,
employees, or stockholders.

Our
Certificate of Incorporation requires to the fullest extent permitted by law, that derivative actions brought in our name, actions against
directors