Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 130

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 for employees engaged in research and development functions;

    ●
    expenses
    incurred in connection with the clinical development and regulatory approval of our clinical assets, including under agreements with
    third parties, such as consultants, contractors and CROs;

    ●
    license
    fees with no alternative use; and

    ●
    other
    expenses related to research and development.

We
expense research and development costs with no alternative future use as incurred. Advance payments that we make for goods or services
to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are
expensed as the benefits are consumed.

We
incurred approximately $1.8 million and $25,000 on research and development activities during the three months ended June 30, 2025,
and June 30, 2024, respectively. We incurred approximately $2.8 million and $0.2 million on research and development activities during
the six months ended June 30, 2025, and June 30, 2024, respectively. Our research and development activities have been focused on developing
co-crystals of AZD1656 to increase patent life as well as purchasing technology to help us determine the feasibility that AZD1656, and
potentially other de-prioritized assets, reaches commercialization. Some of this work was completed by third-party CROs but all intellectual
property is retained by us. We currently have one pending international patent application and two pending national patent applications.
The successful completion of clinical trials increases the value of clinical assets and may lead to the commercialization and/or licensing
of such assets to other pharmaceutical companies. There is no assurance that any clinical trials on the assets owned or licensed by us
will be successful.

General
and Administrative Expenses

General
and administrative expenses consist of salaries and other related costs, legal fees relating to intellectual property and corporate matters,
professional fees for accounting, auditing, tax and consulting services, insurance costs, travel, and other operating costs.

We
anticipate that our general and administrative expenses will increase substantially for the foreseeable future as we increase our administrative
headcount to operate as a public company and as we advance clinical assets through clinical development. We also will incur additional
expenses as a result of operating as a public company, including expenses related to compliance with the rules and regulations of the
SEC and the Nasdaq listing rules, additional insurance expenses, investor relations activities and other administrative and professional