Company: CSDX
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001214659-25-014817
Chunk: 21

Company: CS DIAGNOSTICS CORP.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 states where the securities may be offered without
registration in reliance on the partial preemption from the registration or qualification provisions of such state statutes under the
National Securities Markets Improvement Act of 1996. If investors were successful in seeking rescission, we would face severe financial
demands that could adversely affect our business and operations. Additionally, if we did not in fact qualify for the exemptions upon which
it has relied, we may become subject to significant fines and penalties imposed by the SEC and state securities agencies.

  22  

There is no current established trading market for our Shares and
if a trading market does not develop, purchasers of our securities may have difficulty selling their Shares.

There is currently no established public trading market for our Shares
and an active trading market in our Shares may not develop or, if developed, may not be sustained. No market makers have committed to
becoming market makers for our Shares and none may do so in the future.

Because we do not intend to pay any cash dividends on our Shares
our members will not be able to receive a return on their Shares unless they sell them.

We intend to retain any future earnings to finance the development
and expansion of our business. We do not anticipate paying any cash dividends on our Shares in the foreseeable future. Unless we pay dividends,
our members will not be able to receive a return on their Shares unless they sell them. There is no assurance that members will be able
to sell Shares when desired.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

The Company continues to cooperate with its counsels and monitor developments
in its pending civil actions described under Item 1. Management does not presently believe that the outcome of these matters will have
a material adverse effect on the Company’s financial position or results of operations; however, the ultimate results cannot be
predicted with certainty. The Company will provide additional disclosure regarding any material developments through future filings with
the Securities and Exchange Commission, including Current Reports on Form 8-K, as appropriate.

During the quarter ended June 30, 2025, and through the date of this
Report, the Company also continued to evaluate strategic financing and partnership opportunities to support commercialization and regulatory
initiatives. No definitive agreements have been executed as of the filing date.

There have been no material changes to the composition of the Board