Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 842

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 842
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The
Merger was accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States
of America (“U.S. GAAP”). Under the reverse recapitalization method, MURF was treated as the acquired company for financial
reporting purposes, and the accounting acquirer was assumed to have issued shares of stock for the net assets of MURF, with no goodwill
or other intangible assets recorded.

Basis
of Presentation

The
accompanying consolidated financial statements have been prepared by the Company in accordance with U.S. GAAP as set forth by the Financial
Accounting Standards Board (“FASB”) and pursuant to the rules and regulations of the United States Securities and Exchange
Commission (“SEC”). References to U.S. GAAP issued by the FASB in these notes to the accompanying consolidated financial
statements are to the FASB Accounting Standards Codifications (“ASC”) and Accounting Standards Update (“ASUs”).

Principles
of Consolidation

The
accompanying consolidated financial statements include the accounts of Conduit Pharmaceuticals, Inc. and its wholly owned subsidiaries
Conduit UK Management Ltd. (United Kingdom) and Conduit Pharmaceuticals, Ltd. (Cayman Islands). As used herein, references to the “Company”
include references to Conduit Pharmaceuticals, 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 December 31, 2024, the Company had
an accumulated deficit of $29.1 million. As of December 31, 2024 and December 31, 2023, the Company had cash and cash equivalents and
short-term investments of $0.6 million and $4.2 million, respectively. For the year ended December 31, 2024 and 2023, the Company had
net operating losses of $15.4 million and $5.3 million, respectively, and cash used in operating activities of $9.7 million and $7.7
million, respectively. Management has determined that it does not have sufficient cash and other sources of