CDT Equity Inc. Reports Increased Operating Losses and Strategic Developments in Latest 10-Q Filing

CDT Equity Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded an operating loss of $4.95 million for the three months ended June 30, 2025, compared to a loss of $3.14 million for the same period in 2024. For the six months ending June 30, 2025, the operating loss increased to $8.57 million from $6.10 million in the prior year. The increase in losses is attributed primarily to a substantial rise in research and development expenses, which surged to $1.86 million in Q2 2025 from just $25,000 in Q2 2024, reflecting the company's intensified focus on its clinical asset development.

The company’s total revenue for the six months ended June 30, 2025, was not specified, but it reported a net loss of $10.78 million, up from a loss of $8.94 million in the same period last year. This increase in net loss was influenced by higher operating expenses and a notable rise in other expenses, which included a loss on the change in fair value of convertible notes payable. The company’s cash and cash equivalents increased to $3.33 million as of June 30, 2025, compared to $554,000 at the end of 2024, primarily due to proceeds from the issuance of common stock under its at-the-market offering program.

Strategically, CDT Equity has made significant moves, including the execution of a merger with Murphy Canyon Acquisition Corp. in September 2023, which has since positioned the company to leverage its data-driven approach in pharmaceutical development. The company has also entered into various agreements, including a service agreement with Sarborg Limited, aimed at enhancing its research capabilities through AI-driven technologies. Additionally, CDT Equity has expanded its focus into the animal health market through a joint development agreement with Manoira Corporation, which is expected to provide new revenue streams.

Operationally, the company has seen a notable increase in its employee headcount, reflecting its growth strategy and the need for additional resources to support its research and development efforts. As of June 30, 2025, CDT Equity had 3,062,025 shares of common stock outstanding, following a series of stock issuances to raise capital. The company is also actively pursuing additional funding avenues to support its ongoing operations and research initiatives, with management expressing confidence in its ability to secure necessary capital despite the challenges posed by its current financial position.

Looking ahead, CDT Equity Inc. anticipates continued operating losses and negative cash flows, necessitating further funding to support its business plan. The company has indicated that it will seek additional capital through public or private equity or debt financing, although there is no assurance that such funding will be available on favorable terms. The management has acknowledged substantial doubt regarding the company's ability to continue as a going concern for at least the next 12 months, emphasizing the need for strategic financial planning and execution to navigate the challenges ahead.