Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 116

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 entered
into between the Company and Sarborg on December 12, 2024 (the “Sarborg Agreement”) is designed to address longstanding challenges
in the pharmaceutical sector, in particular by reducing human error in critical decision-making processes in both clinical development
and asset identification. By integrating Sarborg’s algorithmic AI/cybernetics technology, Conduit aims to enhance efficiency, lower
costs, and accelerate timelines by minimizing human intervention, ultimately optimizing the drug development cycle and giving Conduit
a competitive advantage in the sector.

Through
this relationship, Conduit will gain access to cutting-edge predictive models and dashboards, enabling the Company to evaluate drug candidates,
streamline clinical trials, and optimize asset management with real-time data. These tools will drive faster, more accurate decisions,
improving efficiency and reducing costs. By leveraging these insights, Conduit can differentiate itself in a competitive sector and gain
unique data-driven insights that position the Company for success across both its current and future asset portfolio.

In
addition, Conduit will retain a perpetual, non-exclusive, royalty-free, and assignable right to use any platform or technology developed
by Sarborg in association with the deliverables. Ongoing support from Sarborg will ensure these systems evolve with Conduit’s needs,
driving long-term innovation in areas like IP creation, regulatory strategy, and clinical trial monitoring. This partnership reinforces
Conduit’s commitment to leveraging AI-driven solutions to accelerate growth, deliver value to shareholders, and maintain a competitive
edge in the pharmaceutical sector.

This
strategic move reaffirms Conduit’s commitment to adopting forward-thinking solutions to stay at the forefront of innovation in
the pharmaceutical industry. By reducing reliance on traditional, labor-intensive methods and harnessing the power of AI-driven technology,
Conduit is well-positioned to lead in areas such as drug repurposing, clinical trial monitoring, and IP creation, ensuring the Company’s
long-term growth and market leadership.

Furthermore,
Conduit is well positioned to pursue, and intends to pursue, additional relationships and/or partnerships with third parties for the
licensing of further assets which are currently deprioritized. We plan to focus our efforts on developing clinical assets to address
disorders that impact a large population where there is no present treatment or the present treatment, carries significant unwanted side
effects.

Key
Component of Result of Operations

Operating
Expenses

Research
and Development Expenses

Research
and development expenses consist primarily of costs incurred in connection with the research and development of our