Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 34

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 income loss for the three months ended March 31, 2025.

Master
Service Agreement – Conduit and Charles River Laboratories

On
February 7, 2025, the Company and Charles River Laboratories (“Charles River”) entered into a Master Services Agreement
(the “Charles River MSA”). Under the Charles River MSA, Charles River agreed to provide preclinical testing and research
services to Conduit, including the evaluation of compounds in animal models and other related services. The services are defined in
individual Statements of Work (“SOWs”) or Protocols, which outline the specific scope, design, and timelines for each
study. To date, one SOW, dated February 11, 2025, has been entered into with a total commitment of $0.2 million. Charles River will
conduct the studies in compliance with applicable laws and industry standards, and Conduit will provide necessary test articles and
materials. The Charles River MSA includes provisions for confidentiality, intellectual property ownership, indemnification, and
dispute resolution. The Charles River MSA has a term of five years and can be terminated by either party under specified conditions.
For the three months ended March 31, 2025, the Company recognized $0.1
million in research and development expense in the condensed consolidated statement of operations and comprehensive loss related to
the Charles River MSA.

SARBORG
Additional Agreement

Effective
March 31, 2025, the Company entered into an additional license and use agreement (the “Sarborg Additional Agreement”)
with Sarborg, a related party, covering certain additional deliverables and incorporating a new scope of work focused on analysis of
the Company’s acquired AstraZeneca assets. The term of the Sarborg Additional Agreement is for six months and provides for the
payment, in aggregate, of $2.0
million, which includes an up-front license fee for the term of such agreement, in cash or stock at the Company’s election at
the closing price on the day preceding the effective date of such agreement. On March 31, 2025, the Company prepaid $1.65
million of the Sarborg Additional Agreement through the issuance of 1,853,933
fully vested unregistered shares of Common Stock. The Company recorded the shares issued under the Sarborg Additional Agreement at
their fair value, as determined by the closing price of the Company’s Common Stock on March 30, 2025, $0.89,
and adjusted