Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 54

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 and programs.
We expense research and development costs and intangible assets acquired that have no alternative future use as incurred. These expenses
include:

    ●
    personnel-related
    expenses, including salaries, bonuses, benefits and stock-based compensation for employees engaged in research and development functions;

    ●
    expenses
    incurred in connection with the clinical development and regulatory approval of our clinical assets, including under agreements with
    third parties, such as consultants, contractors and CROs;

    ●
    license
    fees with no alternative use; and

    ●
    other
    expenses related to research and development.

We
expense research and development costs as incurred. Advance payments that we make for goods or services to be received in the future
for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the benefits are
consumed.

We
incurred approximately $1.3 million and $0.1 million on research and development activities during the three months ended March 31, 2025,
and March 31, 2024, respectively. Our research and development activities have been wholly focused on developing co-crystals of AZD1656
to increase patent life. Some of this work was completed by third-party CROs but all intellectual property is retained by us. We currently
have one pending international patent application and two pending national patent applications. The successful completion of clinical
trials increases the value of clinical assets and may lead to the commercialization and/or licensing of such assets to other pharmaceutical
companies. There is no assurance that any clinical trials on the assets owned or licensed by us will be successful.

General
and Administrative Expenses

General
and administrative expenses consist of salaries and other related costs, legal fees relating to intellectual property and corporate matters,
professional fees for accounting, auditing, tax and consulting services, insurance costs, travel, and other operating costs.

30

We
anticipate that our general and administrative expenses will increase substantially for the foreseeable future as we increase our administrative
headcount to operate as a public company and as we advance clinical assets through clinical development. We also will incur additional
expenses as a result of operating as a public company, including expenses related to compliance with the rules and regulations of the
SEC and the Nasdaq listing rules, additional insurance expenses, investor relations activities and other administrative and professional
services. In addition, if regulatory approval is obtained for clinical assets, we expect to incur expenses associated with building a
sales and