Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 85

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 pharmaceutical company and conducts clinical research with third-party contract
research organizations. The Company expenses research and development costs and intangible assets acquired that
have no alternative future use as incurred. These expenses include:

    ●
    expenses
    incurred under agreements with organizations that support the Company’s drug discovery and development activities;

    ●
    expenses
    incurred in connection with the preclinical and clinical development of the Company’s clinical assets and programs, including
    under agreements with contract research organizations, or CROs;

    ●
    costs
    related to contract manufacturing organizations, or CMOs, that are primarily engaged to provide drug substance and product for our
    clinical trials, research and development programs, as well as investigative sites and consultants that conduct the Company’s
    clinical trials, nonclinical studies and other scientific development services;

    ●
    the
    costs of acquiring and manufacturing nonclinical and clinical trial materials, including manufacturing registration and validation
    batches;

    ●
    employee-related
    expenses, including salaries, related benefits and equity-based compensation expense, for employees engaged in research and development
    functions;

    ●
    acquisition
    costs related to the purchase of licensed intellectual property;

    ●
    costs
    related to compliance with quality and regulatory requirements;

    ●
    payments
    made under third-party licensing agreements; and

    ●
    direct
    and allocated costs related to facilities, information technology, personnel and other overhead.

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. Such amounts are recognized as an expense as the goods are delivered or consumed or the related services are performed,
or until it is no longer expected that the goods will be delivered, or the services rendered.

Purchased
Research and Development Assets

The
Company accounts for its research and development costs in accordance with ASC 730, Research and Development. ASC 730 requires
that research and development are generally recognized as an expense as incurred. However, some costs associated with research and development
activities that have an alternative future use may be capitalizable. Purchases of assets related to research and development activities
are evaluated based on the usefulness to the Company currently and for alternative future uses. Purchased research and development assets
with alternative future use are recorded at cost and subsequently amortized using the straight-line method over their estimated useful
lives. To date