Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 207

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 207
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, 2024, from $0.2 million for the year
ended December 31, 2023. The change was driven by a $0.9 million increase in the amortization of debt issuance costs and debt
discounts and a $0.4 million increase in interest expense incurred on interest-bearing convertible promissory notes.

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 years ended December
31, 2024 and 2023, we incurred operating losses of $15.4 million and $5.3 million, respectively.

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 or debt financings when needed, we may be required to delay, limit, or substantially reduce research
and development efforts all of which could have a material adverse effect on the Company and its financial results.

While
the Company believes in the viability of its ability to raise additional funds, there