Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 108

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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. During the
three and six months ended June 30, 2025, the Company recorded research and development expense of $0.1 million within the condensed
consolidated statements of operations and comprehensive loss related to the amortization of the prepaid.

Manoira Joint Development Agreement

On
June 3, 2025, the Company entered into a joint development agreement (the “Joint Development Agreement”) with Manoira
Corporation (“Manoira”) for a term of one year, which will be automatically renewed for successive one-year terms unless
advance termination notice is provided in accordance with the terms of the Joint Development Agreement. Manoira is an entity
controlled by Dr. Andrew Regan, of which he is sole director, and is therefore considered a related party of the Company. Refer to
Note 11 for additional details.

Pursuant
to the Joint Development Agreement, CDT granted Manoira a non-exclusive, non-transferable, non-sublicensable, fully paid-up, royalty-free
license to the intellectual property rights related to the pharmaceutical compounds known individually and together as AZD1656 and AZD5658
(the “CDT Assets”). Manoira will evaluate the CDT Assets’ applicability in animal health, explore veterinary
market opportunities, and provide data from the evaluations to inform CDT’s human clinical programs. The license does not grant
Manoira the right to distribute, market, promote or sell the products or services that are related to or incorporate the CDT Assets.

Effective
June 3, 2025, in exchange for the approximate $0.5 million of consideration to be paid by CDT under the Joint Development Agreement,
CDT issued to Manoira 154,799 shares of its Common Stock, (the “Consideration Shares”) valued at the closing price of
the Common Stock immediately preceding execution of the Joint Development Agreement. The Company recorded the shares issued under the
Joint Development Agreement at their fair value, as determined by the closing price of the Company’s Common Stock on June 2, 2025,
$3.94, and adjusted for a 20% discount for lack of marketability, as determined by a third-party valuation expert. The Company recorded
the fair value of $0.4 million as a prepaid within the condensed consolidated balance sheets. During the three and six months ended June
30, 2025, the Company did not record amortization expense, as no research and development activities had