Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 57

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 development and commercialization of the Licensed Products under the related License
Agreement. The Company is required to use commercially reasonable efforts to develop and commercialize the Licensed Products.

AstraZeneca has conducted initial
pre-clinical and, in some instances, clinical trials on these assets, but has decided to license them for further development. As the
clinical assets have undergone initial pre-clinical and clinical testing conducted by AstraZeneca, we are able to use the safety data
generated in these clinical trials to assess which clinical assets to further develop and re-purpose.

Furthermore, CDT 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.

32

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 with no alternative future use 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 $1.8 million and $25,000 on research and development activities during the three months ended June 30, 2025,
and June 30, 2024, respectively. We incurred approximately $2.8 million and $0.2 million on research and development activities during
the six months ended June 30, 2025, and June 30, 2024, respectively. Our research and development activities have been focused on