Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 1097

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 11
Chunk 1097
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31, 2022.

The
payments received for the sale of future revenue were classified as a liability related to the future sale of revenue. Under ASC 470-10-25,
a seller of future revenue should evaluate whether the proceeds received should be accounted for as debt or deferred income. In assessing
the factors that created a rebuttable presumption of debt within the guidance, the Company determined that there were factors present
to overcome the debt presumption and deferred income classification to be appropriate. The main factors the Company considered were that
the transactions in form were sales, and not debt transactions. Each agreement does not guarantee a return to each purchaser, the return
is based solely on future performance of AZD 1656 should it reach commercialization, with neither purchaser having an involvement in
generating future cash flows from AZD 1656.

On
December 15, 2022, the Company entered into an agreement with Cizzle whereby the Company granted Cizzle the option, but not the obligation,
to sell its economic interest in AZD 1656 back to the Company. The agreement contained an option period of nine months from the date
of the agreement for Cizzle to notify the Company of its intent to exercise the option to sell its economic interest in AZD 1656. Upon
closing of the agreement, Cizzle agreed to pay the Company an option fee of $0.1 million (£0.1 million).

On
September 26, 2023, Cizzle exercised its option to sell back its indirect investment in AZD 1656 in exchange for 3,954
shares of the Common Stock. The Company recognized
the $1.5
million of deferred revenue and recorded $1.5
million to other income (expense), net, on the
consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2023. As of December 31, 2023,
there was no liability for the sale of future revenue related to Cizzle.

    F-19

7.
Convertible Notes Payable

Convertible
Promissory Notes Payable

During
March 2023, the Company issued a convertible promissory note payable (the “Convertible Promissory Notes Payable”) with an
aggregate principal amount of $0.8
million to a non-related third party. The
Convertible Promissory Note Payable had a maturity date of 18 months from the date of issuance. The
note carries interest at