Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 139

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 139
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,000 of interest expense on the A.G.P. Convertible
Note, $24,000 of interest expense on the August 2024 Nirland Note, $8,000 of interest expense on the October 2025 Nirland Note, and $65,000
of debt issuance cost amortization related to the Convertible Promissory Note Payable, partially offset by a $79,000 decrease of interest
expense related to the Deferred Commission Payable balance and a $40,000 of decrease of interest expense on the Convertible Promissory
Note Payable.

Liquidity
and Capital Resources

Management
assesses liquidity in terms of our ability to generate cash to fund operating, investing and financing activities. Since our inception,
and in line with our growth strategy, we have prepared our financial statements assuming we will continue as a going concern. Since our
inception, we have incurred net losses and experienced negative cash flows from operations. To date, our primary sources of capital have
been through private placements of equity securities and convertible debt and the Sales Agreement with A.G.P. During the three months
ended March 31, 2025 and 2024, we incurred operating losses of $5.1 million and $3.6 million, respectively.

Sources
and Uses of Liquidity

Our
primary uses of cash are to fund our operations as we continue to grow our business. We will require a significant amount of cash for
expenditures as we invest in ongoing research and development and business operations. Until such time we can generate significant revenue
from the successful approval and commercialization of a product candidate, we expect to finance our cash needs for ongoing research and
development and business operations through public or private equity or debt financings or other capital sources, including strategic
partnerships. However, we may be unable to raise additional funds or enter into such other arrangements, when needed, on favorable terms
or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest
of our stockholders will be, or could be, diluted, and the terms of these securities may include liquidation or other preferences that
adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that
include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures
or declaring dividends. If we are unable to raise additional funds through equity