Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 8

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 Company
had cash and cash equivalents of $3.3 million
and $0.6 million,
respectively. For the six months ended June 30, 2025 and 2024, the Company had net losses of $10.8
million and $8.9
million, respectively, and cash used in operating activities
of $6.5
million and $3.9
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 $8.2 million (see Note 9), 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 “January 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 new share of Common Stock, subject to the treatment of fractional shares as described below,
without any action on the part of the holders. The January Reverse Stock Split did not affect the number of authorized shares of Common Stock or the par value of the Common