Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 157

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 157
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 2025 as compared to June 30, 2024.

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 six months ended
June 30, 2025 and 2024, we incurred operating losses of $8.6 million and $6.1 million, respectively.

36

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.
However, we may be unable to raise additional funds or enter into such other arrangements, when needed, on favorable terms or at all.
To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our
stockholders will be, or could be, diluted, and the terms of these securities may include liquidation or other preferences that adversely
affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include
covenants, limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures
or declaring dividends. If we are unable to raise additional funds through equity or debt financing when needed, we may be required to
delay, limit, or substantially reduce research and development efforts all of which could have a material adverse effect on the Company
and its financial results.

While
the Company believes in the viability of its ability to raise additional funds, there can be no assurances to that effect. We have based
our estimates on assumptions of operating costs that may prove to be wrong. As a result, we could deplete our capital resources sooner
than we currently expect. If, for any reason