Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 1172

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 13
Chunk 1172
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United Kingdom) and Conduit Pharmaceuticals, Ltd. (Cayman Islands). As used herein, references to the “Company”
include references to Conduit Pharmaceuticals, Inc, and its subsidiaries. All intercompany balances and transactions have been eliminated
in consolidation.

Liquidity
and Going Concern

In
accordance with ASC 205-40, Going Concern, the Company has evaluated whether there are conditions and events, considered in the aggregate,
that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial
statements are issued. Since its inception, the Company has generated significant losses and as of December 31, 2024, the Company had
an accumulated deficit of $29.1 million. As of December 31, 2024 and December 31, 2023, the Company had cash and cash equivalents and
short-term investments of $0.6 million and $4.2 million, respectively. For the year ended December 31, 2024 and 2023, the Company had
net operating losses of $15.4 million and $5.3 million, respectively, and cash used in operating activities of $9.7 million and $7.7
million, respectively. Management has determined that it does not have sufficient cash and other sources of liquidity to fund its current
business plan. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern for at least
the next 12 months from the financial statement filing date.

The
Company’s expectation is to generate operating losses and negative operating cash flows in the future and will need additional
funding to support its current business plan in addition to the remaining at the market offering program (the “Sales
Agreement”) of $12.0 million (See Note 20), as of the financial statement release date. Management’s plans to alleviate the
conditions that raise substantial doubt through the pursuit of additional cash resources through public or private equity or debt
financings. However, there is no assurance that such funding will be available when needed or on acceptable terms. If additional
funding is not available when required, the Company would need to delay or curtail its operations and its research and development
activities until such funding is received, all of which could have a material adverse effect on the Company and its financial
condition.

These
financial statements have been prepared assuming the Company will continue as a going concern and do not include adjustments to reflect
the possible