Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 2

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 2
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the Company had an accumulated deficit of $47.0 million. As of September 30, 2025 and December 31, 2024, the Company had cash and cash
equivalents of $3.8 million and $0.6 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company had net
losses of $17.9 million and $15.4 million, respectively, and cash used in operating activities of $10.9 million and $5.9 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 of approximately $1.8
million (see Note 10), which has been utilized as of the financial statement issuance date (see Note 16). 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. The Company has also considered exploring strategic alternative paths to fund raising through a shift in
the Company’s fundamental operations as a pharmaceutical development company to a digital asset treasury management company.
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 effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result
from the outcome of this uncertainty.

Reverse
Stock Splits

During 2025, the Company completed three reverse stock splits: a 1-for-100 split effective January 24, 2025 (the
“January Reverse Stock Split”), a 1-for-15 split effective May 19, 2025 (the “May Reverse Stock Split”), and a
1-for-8 split effective October 10,