Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 35

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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expense recognized within general and administrative expenses on the condensed consolidated statements of operations and comprehensive
loss, respectively.

For
the nine months ended September 30, 2025 and 2024, there was a total of $2.0 million and $1.3 million, respectively in stock-based compensation
expense recognized within general and administrative expenses on the condensed consolidated statements of operations and comprehensive
loss, respectively.

9.
Income Taxes

On
July 4, 2025, the United States Congress passed the budget reconciliation bill H.R. 1, known as the One Big Beautiful Bill Act
(“OBBBA”). Key provisions include the repeal of Section 174 R&D capitalization requirements, the extension of 100% bonus
depreciation, restoration of the Section 163(j) interest limitation to an EBITDA basis, and the introduction of a 1% charitable contribution
deduction floor. As of September 30, 2025, the immediate expensing of R&D costs under Section 174, the continuation of 100% bonus
depreciation, and the restoration of the EBITDA-based Section 163(j) limitation are expected to decrease cash taxes in the short term
and generate a federal net operating loss. These changes did not have a material impact on the Company’s effective tax
rate.

For
the nine months ended September 30, 2025, and 2024, the Company’s effective tax rate was 0.0% due to the current year tax loss
and valuation allowance established against the Company’s net deferred tax assets, and due to operating in a zero tax jurisdiction,
respectively.

10.
Common Stock and Preferred Stock

At-the-Market
Offering

On
October 23, 2024, the Company entered into the Sales Agreement with A.G.P. (the “Sales Agreement”) relating to the sale
of shares of the Company’s Common Stock. In accordance with the terms of the Sales Agreement, the Company may offer and sell
shares of our Common Stock having an aggregate offering price of up to $23.9
million from time to time through A.G.P., acting as our sales agent or principal.

The
compensation to A.G.P. for sales of Common Stock sold pursuant to the Sales Agreement will be equal to 3.0% of the gross proceeds of
any shares of Common Stock sold under the Sales Agreement.

During
the three and nine months ended September 30, 2025