Company: CSDX
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001214659-25-014817
Chunk: 9

Company: CS DIAGNOSTICS CORP.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
. v. Wilson, U. S. District Court, District of
Wyoming, Case No. 25-cv-213-SWS

On September 10, 2025, the Company filed a civil action in the United
States District Court for the District of Wyoming after becoming aware that a third party was attempting to sell or license the Company’s
MEDUSA diagnostic product while claiming ownership rights. The Company seeks damages, restitution, declaratory judgment, and injunctive
relief to enforce its rights under the Exclusive License and Distribution Agreement. The matter is currently pending.

Item 1A. Risk Factors.

Investing in our company’s securities
involves a high degree of risk. You should carefully consider and review the risks described below, together with all other information
included or referred to in this report before purchasing our shares. There are numerous risks and uncertainties that are not known to
us as of the time of this report and we might not consider its significance, which could adversely affect our business, financial condition,
or results of operations. In such event, the trading price of our common stock could decline and you may lose all or part of your investment.

  13  

Risks Related to the Company

We expect to incur operating losses and experience negative cash
flow and it is uncertain whether we will achieve future profitability.

We anticipate incurring operating losses until we generate sufficient
revenue from our operations. Achieving profitability depends on our ability to ensure our products function as intended, gain market acceptance,
and successfully develop and launch additional products and, or services. We cannot guarantee that we will generate sales or reach profitability.
As a result, we cannot predict the extent of future losses or how long it may take to achieve profitability, if at all.

We may need to raise additional funds to finance our capital requirements,
which is dilutive to your investment.

Our cash requirements may vary materially from those now planned depending
on numerous factors, including the status of our marketing efforts, our business development activities, the results of future research
and development and competition. We may need to raise additional funds to finance our capital requirements through private or public financings
before such point for a variety of reasons, including our inability to achieve more substantial revenue operations as we anticipated,
and to achieve a profitable level of operations. Such financing could include equity financing, which may be dilutive to members, or debt
financing, which would likely restrict our ability to make acquisitions and borrow from other sources. In addition, such securities