Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 27

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 27
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. This Agreement also includes confidentiality obligations, representations and warranties, indemnification,
limitation of liability, and insurance requirements.

In
consideration of the services, CDT agreed to pay Sarborg an initial cash payment of $0.2 million and $0.2 million payable through the
issuance of 189 shares of Common Stock, determined by the closing price on the day preceding the execution of the Sarborg Service Agreement.
The initial cash payment of $0.2 million was made on December 20, 2024, and the 189 shares of Common Stock were issued on January 17,
2025. Further milestone payments payable in conjunction with the achievement of certain milestones over the term of the Sarborg Service
Agreement, totaling up to $1.8 million, are payable in cash or stock, at the discretion of CDT. Sarborg will be reimbursed for pre-approved,
necessary, and reasonable out-of-pocket expenses directly incurred in connection with the performance of the services.

The
initial cash payment of $0.2 million and issuance of 189 shares of Common Stock were recorded to prepaid expense and will be amortized
over the initial term of the Sarborg Service Agreement to research and development expense. For the three and nine months ended September
30, 2025, the Company recorded amortization expense of $0.1 million and $0.3 million, respectively, with research and development expense
in the condensed consolidated statement of operations and comprehensive income loss, respectively. As of September 30, 2025, $0.1 million
of the prepaid balance remains within the condensed consolidated balance sheets.

Under
the Sarborg Service Agreement, the Company will be provided with a dashboard that will be utilized for both the Company’s existing
and future asset portfolio. Specifically, the dashboard includes a clinical trial monitoring functionality and a dynamic pharmaceutical
patent landscape module to assess both the Company’s current assets undergoing clinical trials and delisted patents in the marketplace
that may be overlooked by other market participants. These features will be used by management to monitor progress, assess trial status,
identify new opportunities, and support decision-making across all current and future development programs. The Company assessed the
guidance in ASC 730 and determined that $0.4 million of total cost of the acquired asset should be capitalized as the dashboard is considered
a purchased diagnostic asset with alternative future use. Management determined that the dashboard has a useful life of two years. The
dashboard was placed in service on March 18