Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 54

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 54
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notes payable.

For
further details refer to Note 13, “Other income (expense), net,” in the unaudited financial statements as of September 30,
2025 and September 30, 2024 included elsewhere in this document.

Interest
Expense, Net

    Nine Months ended  September 30,  
    Change 
  
    (Dollar amounts in thousands) 
    2025  
    2024  
    Amount  
    % 
  
    Interest expense, net 
    $(281) 
    $(547) 
    $266  
     (49)%

Interest
expense, net decreased by $0.3 million, or 49%, during the nine months ended September 30, 2025, as compared to $0.6 million for the
three months ended September 30, 2024. The change was primarily driven by a decrease of $0.1 million of interest expense related to the
amortization of debt issuance costs and a decrease of $0.2 million of interest expense on the deferred commission payable to an advisor
for fees related to the Merger, partially offset by a $0.1 million increase of interest expense for interest on convertible notes and
notes payable.

Liquidity
and Capital Resources

Management
assesses liquidity in terms of our ability to generate cash to fund operating, investing and financing activities. Since our inception,
and in line with our growth strategy, we have prepared our financial statements assuming we will continue as a going concern. Since our
inception, we have incurred net losses and experienced negative cash flows from operations. To date, our primary sources of capital have
been through convertible debt, private placements of equity securities and the Sales Agreement with A.G.P. During the nine months ended
September 30, 2025 and 2024, we incurred operating losses of $17.9 million and $15.4 million, respectively.

32

Sources
and Uses of Liquidity

Our
primary use of cash is to fund our operations as we continue to grow our business. We will require a significant amount of cash for
expenditures as we invest in ongoing research and development and business operations. Until such time we can generate significant
revenue from the successful approval and commercialization of a product candidate, we expect to finance our cash needs for ongoing
research and development and business operations through public or private equity or debt financings or other capital sources,
including strategic partnerships.