Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 644

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 644
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 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 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.

Our research and development
activities have been wholly focused on developing co-crystals of AZD1656 to increase patent life. 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.

60

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
services. In addition, if regulatory approval is obtained for clinical assets, we expect to incur expenses associated with building a
sales and marketing team.

Other
Income (Expenses)

Other
income (expenses), net

Other
income (expense), net consists of change in the fair value of options, change in fair value of convertible notes, and expense incurred
upon the issuance of warrants during the year.

Interest
expense, net

Interest
expense, net consists primarily of interest expense on convertible loan notes and promissory notes and interest expense on deferred commissions
payable to an advisor for fees related to the merger, as well as a small amount of interest income on cash and