Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 8

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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, the Company has generated significant
losses and as of March 31, 2025, the Company had an accumulated deficit of $34.2 million. As of March 31, 2025 and December 31, 2024,
the Company had cash and cash equivalents of $2.1 million and $0.6 million, respectively. For the three months
ended March 31, 2025 and 2024, the Company had net losses of $5.1 million and $3.6 million, respectively, and cash used in operating
activities of $4.3 million and $2.4 million, respectively.

Management
has determined that it does not have sufficient cash and other sources of liquidity to fund its current business plan. These factors
raise substantial doubt regarding the Company’s ability to continue as a going concern for at least the next 12 months from the
financial statement filing date.

The
Company’s expectation is to generate operating losses and negative operating cash flows in the future and will need additional
funding to support its current business plan in addition to the remaining at the market offering program (the “Sales
Agreement”) of approximately $12.0
million (see Note 10), as of the financial statement issuance date. Management’s plans to alleviate the conditions that raise
substantial doubt through the pursuit of additional cash resources through public or private equity or debt financings. However,
there is no assurance that such funding will be available when needed or on acceptable terms. If additional funding is not available
when required, the Company would need to delay or curtail its operations and its research and development activities until such
funding is received, all of which could have a material adverse effect on the Company and its financial condition

These
financial statements have been prepared assuming the Company will continue as a going concern and do not include adjustments to reflect
the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result
from the outcome of this uncertainty.

Reverse
Stock Split

On
January 24, 2025, the Company amended its Second Amended and Restated Certificate of Incorporation with the Secretary of State of the
State of Delaware in order to effect a 1-for-100 reverse stock split of its outstanding shares of common stock (the “Reverse Stock
Split”). As a result of the reverse stock split, every 100 shares of the Company’s common stock issued or outstanding were
automatically reclassified into one