Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 135

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 135
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 retain a perpetual, non-exclusive, royalty-free, and assignable right to use any platform or technology developed
by Sarborg in association with the deliverables. Ongoing support from Sarborg will ensure these systems evolve with Conduit’s needs,
driving long-term innovation in areas like IP creation, regulatory strategy, and clinical trial monitoring. This partnership reinforces
Conduit’s commitment to leveraging AI-driven solutions to accelerate growth, deliver value to shareholders, and maintain a competitive
edge in the pharmaceutical sector.

This
strategic move reaffirms Conduit’s commitment to adopting forward-thinking solutions to stay at the forefront of innovation in
the pharmaceutical industry. By reducing reliance on traditional, labor-intensive methods and harnessing the power of AI-driven technology,
Conduit is well-positioned to lead in areas such as drug repurposing, clinical trial monitoring, and IP creation, ensuring the Company’s
long-term growth and market leadership.

Furthermore,
Conduit is well positioned to pursue, and intends to pursue, additional relationships and/or partnerships with third parties for the
licensing of further assets which are currently deprioritized. We plan to focus our efforts on developing clinical assets to address
disorders that impact a large population where there is no present treatment or the present treatment, carries significant unwanted side
effects.

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 the clinical development and regulatory approval of our clinical assets, including under agreements with
    third parties, such as consultants, contractors and CROs;

    ●
    license
    fees with no alternative use; and

    ●
    other
    expenses related to research and development.

We
expense research and development costs as incurred. 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. The prepaid amounts are expensed as the benefits are
consumed.

We
incurred approximately $1.3 million and $0.1 million on research and development activities during the three months ended March 31, 202