Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 10

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 May Reverse Stock
Split as if the splits occurred as of the earliest period presented.

Other
Risks and Uncertainties

The
Company is subject to risks common to companies in the development stage and pharmaceutical industry including, but not limited to, uncertainties
related to pre-clinical and clinical outcomes competitor products, regulatory approvals, dependence on key products, dependence on key
suppliers and protection of intellectual property rights (see Note 14 for details on a claim against our AZD 1656 co-crystal patent).
Clinical assets currently under development will require significant additional research and development efforts, including extensive
preclinical and clinical testing and regulatory approval prior to commercialization. These efforts will require significant amounts of
additional capital, adequate personnel, infrastructure, and extensive compliance and reporting capabilities. Even if the Company’s
efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue and cash flow from royalties or product
sales.

The
Company licenses clinical assets from AstraZeneca (see Note 6 for further detail). If there is a breach or other termination of such
agreements, there could be a material adverse effect on the Company’s business, financial condition, operating results, and prospects.

Related party transactions and arrangements, specifically research and development related transactions, the Company enters into subject
the Company to certain risks. Related party transactions in general are regarded as increasing the risk of omissions or misstatements
in financial reporting, the risk of transactions being done on other than arm’s length terms due to the close ties between the parties
involved and the risk of regulatory non-compliance. In addition, related-party transactions present potential conflicts of interest that
could result in decisions that prioritize the economic interests of certain individuals over those of the primary purpose of the research
and development, our company and its stockholders. In the instance of a dispute under any related-party agreement, the interests of affiliated
parties may not align with the Company’s interest, and the resolution of such disputes may be less favorable than what the Company
might achieve in a transaction with an unaffiliated third party.

The
Company is also subject to risks associated with the Nasdaq Stock Market (“Nasdaq”) correspondence.

In
August 2024, the Company received deficiency letters from Nasdaq notifying the Company that it was not in compliance with Listing Rule
5450(a)(1) (the “Bid Price Rule”), Listing Rule 5450(b)(2)(C) (the “MVPHS Rule