Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 34

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
---
 with applicable laws and industry standards, and CDT will provide necessary test articles and materials. The Charles
River MSA includes provisions for confidentiality, intellectual property ownership, indemnification, and dispute resolution. The Charles
River MSA has a term of five years and can be terminated by either party under specified conditions. For the three and six months ended
June 30, 2025, the Company recognized $0.1 million in research and development expense in the condensed consolidated statement of operations
and comprehensive loss related to the Charles River MSA.

    20

SARBORG
Additional Agreement

Effective
March 31, 2025, the Company entered into an additional license and use agreement (the “Sarborg Additional Agreement”)
with Sarborg, a related party, covering certain additional deliverables and incorporating a new scope of work focused on analysis of
the Company’s acquired AstraZeneca assets. The term of the Sarborg Additional Agreement is for six months and provides for the
payment, in aggregate, of $2.0
million, which includes an up-front license fee for the term of such agreement, in cash or stock at the Company’s election at
the closing price on the day preceding the effective date of such agreement. On March 31, 2025, the Company prepaid $1.65
million of the Sarborg Additional Agreement through the issuance of 123,595
fully vested unregistered shares of Common Stock. The Company recorded the shares issued under the Sarborg Additional Agreement at
their fair value, as determined by the closing price of the Company’s Common Stock on March 30, 2025, $13.35,
and adjusted for an 7%
discount for lack of marketability, as determined by a third-party valuation expert. Effective May 2, 2025, the term was extended to
be 12 months from the effective date of the Sarborg Additional Agreement at no additional cost to the Company. The Company recorded
the fair value of $1.5
million as a prepaid within the condensed consolidated balance sheets. During the three and six months ended June 30, 2025, the
Company recorded research and development expense of $0.5
million within the condensed consolidated statements of operations and comprehensive loss related to the amortization of the
prepaid. As of June 30, 2025, $1.0 million of the prepaid balance remains within the condensed consolidated balance sheets.

During
the three and six months ended