Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 33

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 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, 2025. During the three and six months ended June 30, 2025, the Company recorded
$50 thousand and $57 thousand in amortization expense, respectively.

All
other costs under the Sarborg Service Agreement shall be expensed as incurred and recorded within research and development expense in
the condensed consolidated statement of operations and comprehensive income loss, as the services are designed to aid in the Company’s
research and development activities.

During
the three and six months ended June 30, 2025, Sarborg was paid $0.5 million and $1.2 million, respectively, for completed milestones under the Sarborg
Service Agreement and had an outstanding payable balance of $0.2 million as of June 30, 2025. The Company recorded $0.7 million and $1.5 million in expense within research and development expense
in the condensed consolidated statement of operations and comprehensive income loss for the three and six months ended June 30, 2025,
respectively. The remaining $0.4 million was related to the delivery of the dashboard, which was recorded as a diagnostic asset
on the condensed consolidated balance sheet as of March 31, 2025.

Master
Service Agreement – CDT Equity Inc. and Charles River Laboratories

On
February 7, 2025, the Company and Charles River Laboratories (“Charles River”) entered into a Master Services Agreement (the
“Charles River MSA”). Under the Charles River MSA, Charles River agreed to provide preclinical testing and research services
to CDT, including the evaluation of compounds in animal models and other related services. The services are defined in individual
Statements of Work (“SOWs”) or Protocols, which outline the specific scope, design, and timelines for each study. To date,
one SOW, dated February 11, 2025, has been entered into with a total commitment of $0.2 million. Charles River will conduct the studies
in compliance