Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 32

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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The
Sarborg Service Agreement provides Sarborg with registration rights for any Common Stock of CDT that Sarborg receives as consideration
under the Sarborg Service Agreement. In such event, CDT will use commercially reasonable efforts to (i) file a registration statement
covering the resale of the Common Stock within 60 days after the issuance; and (ii) ensure that such registration statement becomes effective
within 90 days after filing. This Agreement also includes confidentiality obligations, representations and warranties, indemnification,
limitation of liability, and insurance requirements.

In
consideration of the services, CDT agreed to pay Sarborg an initial cash payment of $0.2
million and $0.2
million payable through the issuance of 1,515
shares of Common Stock, determined by the closing price on the day preceding the execution of the Sarborg Service Agreement. The
initial cash payment of $0.2
million was made on December 20, 2024, and the 1,515
shares of Common Stock were issued on January 17, 2025. Further milestone payments payable in conjunction with the achievement of
certain milestones over the term of the Sarborg Service Agreement, totaling up to $1.8
million, are payable in cash or stock, at the discretion of CDT. Sarborg will be reimbursed for pre-approved, necessary, and
reasonable out-of-pocket expenses directly incurred in connection with the performance of the services.

The initial cash
payment of $0.2 million
and issuance of 1,515 shares
of Common Stock were recorded to prepaid expense and will be amortized over the initial term of the Sarborg Service Agreement to
research and development expense. For the three and six months ended June 30, 2025, the Company recorded amortization expense of
$0.1 million
and $0.2 million,
respectively, with research and development expense in the condensed consolidated statement of operations and comprehensive income
loss, respectively. As of June 30, 2025, $0.2
million of the prepaid balance remains within the condensed consolidated balance sheets.

Under the Sarborg Service Agreement, the
Company will be provided with a dashboard that will be utilized for both the Company’s existing and future asset portfolio. Specifically,
the dashboard includes a clinical trial monitoring functionality and a
dynamic pharmaceutical patent landscape module to assess both the Company’s current assets undergoing clinical trials and delisted
patents in the marketplace that may be overlooked