Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 1206

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 13
Chunk 1206
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ible Note in the principal amount of $5.7 million to evidence the currently owed
deferred commission payable, at which time the deferred commission payable balance was removed. Refer to the Note 7 for additional information.

10.
Research and Development Expense

August
2024 License Agreement

On August 7, 2024, the Company and AstraZeneca AB (PUBL) (“AstraZeneca”) entered into a License Agreement, dated August 7,
2024 (the “August 2024 License Agreement”). Pursuant to the August 2024 License Agreement, AstraZeneca agreed to grant a
license to the Company under certain intellectual property rights controlled by AstraZeneca related to HK-4 Glucokinase activators AZD1656
and AZD5658 in all indications and myeloperoxidase inhibitor AZD5904 for the treatment, prevention, and prophylaxis of idiopathic male
infertility. The Company will be responsible for the development and commercialization of the Licensed Products under the August
2024 License Agreement.

As
consideration for the grant of the license, the Company (i) granted AstraZeneca Common Stock pursuant to a stock issuance agreement
(the “Issuance Agreement”), (ii) paid AstraZeneca an up-front payment of $1.5 million,
and (iii) is obligated to pay AstraZeneca a percentage (on a tiered basis) of any amounts it may receive in connection with a grant
of a sublicense (subject to various customary exceptions). The Issuance Agreement called for the Company to issue AstraZeneca 95,044
shares of the Company’s Common Stock. The Issuance Agreement provides AstraZeneca with resale registration rights for such
shares. As of December 31, 2024, the Company recorded $1.6 million
and $1.5 million
in research and development expenses related to the share issuance and upfront payment to AstraZeneca, respectively.

AstraZeneca
has been granted a right of first negotiation to develop, manufacture, and commercialize a Licensed Product if the Company receives an
offer for, or solicits, a transaction where a third party would obtain the right to develop, manufacture, or commercialize a Licensed
Product. If AstraZeneca exercises such right, the parties will negotiate in good faith for an agreed period of time on an exclusive basis.

Either
party may terminate the August