Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 29

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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 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 prepaid within the condensed consolidated balance
sheets. During the three and nine months ended September 30, 2025, the Company recorded research and development expense of $0.4 million
and $0.8 million within the condensed consolidated statements of operations and comprehensive loss related to the amortization of the
prepaid. As of September 30, 2025, $0.7 million of the prepaid balance remains within the condensed consolidated balance sheets.

During
the three and nine months ended September 30, 2025, Sarborg was paid $0.1 million and $0.4 million for deliverables under the Sarborg
Additional Agreement and had no outstanding payable balance as of September 30, 2025. The Company recorded the $0.4 million and $1.3
million in expense within research and development expense in the condensed consolidated statement of operations and comprehensive income
loss for the three and nine months ended September 30, 2025.

First
Addendum to the SARBORG Additional Agreement

Effective
July 1, 2025 the Company entered into an Addendum (the “First Addendum”) to the Additional Agreement with Sarborg,
a related party. Under the terms of the Addendum, Sarborg will expand the scope of the Additional Agreement to provide external analysis
of third-party pharma companies assets suitable for drug re-purposing and evaluate the efficacy of the assets utilizing Conduit’s
license to Sarborg’s machine learning platform. The scope of work is expected to be completed in 4 weeks, which may be renewed
or extended upon the mutual written agreement of the parties. The total consideration for the additional services, payable in cash in
two tranches, was $0.3 million. The Company paid $0.3 million during the three and nine months ending September 30, 2025 and included
in the consolidated statement of operations and comprehensive loss.

Second
Addendum to the SARBORG Additional Agreement

Effective
August 11, 2025 the Company entered into Addendum 2 (the “Second Addendum”) to the Additional Agreement with Sarborg. Under
the terms of the Second Addendum, Sarborg expanded the scope of work to integrate a Cryptocurrency AI Agent, developed specifically for
identifying, forecasting and recommending