Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 1082

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 11
Chunk 1082
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 incurred in connection with the research and development of our clinical assets
and programs, see Note 10 for further discussion of research and development expense. Conduit holds all licenses to conduct clinical
research through a third-party pharmaceutical company. The Company expenses research and development costs and intangible assets
acquired that have no alternative future use as incurred. These expenses include:

    ●
    expenses
    incurred under agreements with organizations that support the Company’s drug discovery and development activities;

    ●
    expenses
    incurred in connection with the preclinical and clinical development of the Company’s clinical assets and programs, including
    under agreements with contract research organizations, or CROs;

    ●
    costs
    related to contract manufacturing organizations, or CMOs, that are primarily engaged to provide drug substance and product for our
    clinical trials, research and development programs, as well as investigative sites and consultants that conduct the Company’s
    clinical trials, nonclinical studies and other scientific development services;

    ●
    the
    costs of acquiring and manufacturing nonclinical and clinical trial materials, including manufacturing registration and validation
    batches;

    ●
    employee-related
    expenses, including salaries, related benefits and equity-based compensation expense, for employees engaged in research and development
    functions;

    ●
    acquisition costs related to the purchase of licensed intellectual property;

    ●
    costs
    related to compliance with quality and regulatory requirements;

    ●
    payments
    made under third-party licensing agreements; and

    ●
    direct
    and allocated costs related to facilities, information technology, personnel and other overhead.

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. Such amounts are recognized as an expense as the goods are delivered or consumed or the related services are performed,
or until it is no longer expected that the goods will be delivered, or the services rendered.

General
and Administrative Expenses

General
and administrative expenses consist primarily of salaries and related costs for personnel in executive management, finance, corporate
and business development, and administrative functions. General and administrative expenses also include legal fees relating to patent
and corporate matters; professional fees for accounting, auditing, tax, and administrative consulting services; insurance costs;
administrative travel expenses and other operating costs.

Income
Taxes

ASC
Topic 740, Income Taxes, sets forth standards