Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 78

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 as of and for the year then ended.

    5

Principles
of Consolidation

The
accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned
subsidiaries Conduit UK Management Ltd. (United Kingdom) and Conduit Pharmaceuticals, Ltd. (Cayman Islands). As used herein,
references to the “Company” or “CDT” include references to CDT Equity Inc. and its subsidiaries. All
intercompany balances and transactions have been eliminated in consolidation.

Liquidity
and Going Concern

In
accordance with ASC 205-40, Going Concern, the Company has evaluated whether there are conditions and events, considered in the
aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date
the financial statements are issued. Since its inception, the Company has generated significant losses and as of June 30, 2025, the Company
had an accumulated deficit of $39.9
million. As of June 30, 2025 and December 31, 2024, the Company
had cash and cash equivalents of $3.3 million
and $0.6 million,
respectively. For the six months ended June 30, 2025 and 2024, the Company had net losses of $10.8
million and $8.9
million, respectively, and cash used in operating activities
of $6.5
million and $3.9
million, respectively.

Management
has determined that it does not have sufficient cash and other sources of liquidity to fund its current business plan. These factors
raise substantial doubt regarding the Company’s ability to continue as a going concern for at least the next 12 months from the
financial statement filing date.

The
Company’s expectation is to generate operating losses and negative operating cash flows in the future and will need additional
funding to support its current business plan in addition to the remaining at the market offering program (the “Sales Agreement”)
of approximately $8.2 million (see Note 9), as of the financial statement issuance date. Management’s plans to alleviate the conditions
that raise substantial doubt through the pursuit of additional cash resources through public or private equity or debt financings. However,
there is no assurance that such funding will be available when needed or on acceptable terms. If additional funding is not available
when required, the Company would need to delay or curtail