Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 1

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 1
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companying unaudited condensed 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
unaudited condensed consolidated financial statements are to the FASB Accounting Standards Codifications (“ASC”) and Accounting
Standards Update (“ASUs”).

The
accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. GAAP
for interim financial information, and with the rules and regulations of the SEC set forth in Article 8 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim
financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management,
necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative
of the results for the full fiscal year. These condensed consolidated financial statements should be read along with our Annual Report
on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 28, 2025. The consolidated balance sheet as of December
31, 2024 was derived from the audited consolidated financial statements 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 September 30, 2025,