Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 69

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 69
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 Company will be responsible for development and commercialization of the Licensed Products
under the related License Agreement. The Company is required to use commercially reasonable efforts to develop and commercialize the
Licensed Products.

AstraZeneca
has conducted initial pre-clinical and, in some instances, clinical trials on these assets, but has decided to license them for further
development. As the clinical assets have undergone initial pre-clinical and clinical testing conducted by AstraZeneca, we are able to
use the safety data generated in these clinical trials to assess which clinical assets to further develop and re-purpose.

Furthermore, CDT Equity is well positioned to pursue, and intends to pursue,
additional relationships and/or partnerships with third parties to license assets which are currently deprioritized. We plan to focus
our efforts on developing clinical assets to address disorders that impact large populations where there is no present treatment or the
existing treatments carry significant unwanted side effects.

28

Key
Component of Result of Operations

Operating
Expenses

Research
and Development Expenses

Research
and development expenses consist primarily of costs incurred for the research and development of our candidates and programs. We expense
research and development costs and intangible assets acquired that have no alternative future use as incurred. These expenses include:

    ●
    personnel-related
    expenses, including salaries, bonuses, benefits, and stock-based compensation 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
    research and development expenses.

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 $1.5 million and $3.1 million on research and development activities during the three months ended September 30,
2025, and September 30, 2024, respectively. We incurred approximately $4.3 million and $3.2 million on research and development activities
during the nine months ended September 30, 2025, and September 30, 2024, respectively. Our research and development activities have been
focused on developing