Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 3

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 3
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 2025 (the “October Reverse Stock Split”). Each split reduced the number of issued and
outstanding shares without affecting the number of authorized shares or the par value of the Common Stock. No fractional shares were issued;
instead, stockholders received cash in lieu of fractional shares based on the respective post-split closing share prices. All share and
per-share information has been retroactively adjusted to reflect these reverse stock splits for all periods presented.

    6

All
historical share and per-share amounts reflected throughout the accompanying consolidated financial statements and other financial information
in this Quarterly Report on Form 10-Q have been retroactively adjusted to reflect the January Reverse Stock Split, May Reverse Stock
Split and October Reverse Stock Split as if the splits occurred as of the earliest period presented.

Other
Risks and Uncertainties

The
Company is subject to risks common to companies in the development stage and pharmaceutical industry including, but not limited to, uncertainties
related to pre-clinical and clinical outcomes competitor products, regulatory approvals, dependence on key products, dependence on key
suppliers and protection of intellectual property rights (see Note 14 for details on a claim against our AZD 1656 co-crystal patent).
Clinical assets currently under development will require significant additional research and development efforts, including extensive
preclinical and clinical testing and regulatory approval prior to commercialization. These efforts will require significant amounts of
additional capital, adequate personnel, infrastructure, and extensive compliance and reporting capabilities. Even if the Company’s
efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue and cash flow from royalties or product
sales.

The Company licenses clinical assets from AstraZeneca (see Note 7 for further
detail). A breach or other termination of such agreements could have a material adverse effect on the Company’s business, financial
condition, operating results, and prospects.

Related party transactions and arrangements, specifically research and
development related transactions, the Company enters into subject the Company to certain risks. Related party transactions in general
are regarded as increasing the risk of omissions or misstatements in financial reporting, the risk of transactions being done on other
than arm’s length terms due to the close ties between the parties involved and the risk of regulatory non-compliance. In addition,
related-party transactions present potential conflicts of interest that could result in decisions prioritizing the economic interests
of certain individuals over the primary objectives of the Company’s research and development activities, the interests of the Company,
and the interests of