Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 643

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 643
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 par value
and other terms of the common stock were not affected by the Reverse Stock Split.

As
a result of the reverse stock split, every 100 shares of our common stock issued or outstanding were automatically reclassified into
and became one new share of common stock, and the number of our issued and outstanding shares of common stock was reduced to 1,384,801
and 738,295 as of December 31, 2024 and December 31, 2023, respectively. All references to numbers of shares of common stock and per-share
information in this Annual Report on Form 10-K have been adjusted retroactively, as appropriate, to reflect the reverse stock split.

Nasdaq Stock Market Correspondence and Subsequent
Nasdaq Capital Market Listing

We are compliant with the MVPHS
continued listing standard of Nasdaq Capital Market being greater than $1.0 million. The current MVPHS is $5,166,785 based on
the closing price of the common stock on March 27, 2025.

On a pro-forma basis at March 31, 2025, we expect to satisfy compliance
with the Nasdaq Capital Market Equity Standard of Stockholder’s Equity greater than $2.5 million, after anticipating all Q1
2025 expected losses. Through the date of the consolidated financial statements, Stockholder’s Equity has increased significantly,
through (i) fundraising of an additional $8.332 million from the Sales Agreement with AGP, (ii) conversion of $1.785 million from the
Nirland Notes into 924,200 shares of common stock, and (iii) capitalization of certain invoices and fees. We expect to maintain
continued compliance with the Equity Standard through additional issuance under its Sales Agreement, additional conversions of outstanding
debt and capitalization of fees and a tight control of expenditure, although no such assurance can be given. 

Key
Component of Result of Operations

Operating
Expenses

Research
and Development Expenses

Research
and development expenses consist primarily of costs incurred in connection with the research and development of our candidates 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