Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 42

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 42
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30, 2025, a contingency of $0.4 million is considered probable and reasonably
estimable in relation to the Company’s legal proceedings. As such, the Company accrued an estimated liability in the accompanying
financial statements.

In August 2023, prior to the Business Combination, Conduit Pharmaceuticals
Limited, our now wholly-owned subsidiary, received a letter from
Strand Hanson Limited (“Strand”) claiming it was owed advisory fees pursuant to a previously executed letter. CDT 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 4,333 shares of Common Stock. The trial in this matter concluded during October 2025, with a determination
not expected until the first quarter of 2026. Regardless of its outcome, the litigation may impact our business due to, among other factors,
legal costs and the diversion of management’s attention.

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, CDT issued a counterstatement to the Intellectual Property Office disputing the claim filed by St George Street Capital.
As of September 30, 2025, the range of possible loss cannot be estimated and is not considered probable. As such, the Company has not
accrued a loss contingency in the accompanying financial statements. The Company intends to vigorously defend against these claims. Regardless
of its outcome, the litigation may impact our business due to, among other factors, legal costs and the diversion of management’s attention.

Leases

The
Company has a lease agreement for approximately 2,100 square feet of space in Cambridge, England, with a term from March 2024 to January
2027. As of September 30, 2025, the Company has a right-of-use asset of $0.2 million and a corresponding lease liability of $0.2 million
recorded on the condensed consolidated balance sheets. Of the $0.2 million in lease liability, $0.1 million is classified as short-term