--- title: "CDT Equity, formerly Conduit Pharmaceuticals" url: "https://aibio.space/news/cdt-equity-formerly-conduit-pharmaceuticals-says-q1-2025-financials/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-08-14" section: "Distress" tickers: "NASDAQ:CDT" source: "https://www.sec.gov/Archives/edgar/data/1896212/000164117225023840/form8-k.htm" summary: "The company says $0.4 million of milestone payments to Sarborg Limited were booked as research and development expense but should have been an acquired dia" --- By the aibio.space news desk. Sources - [CDT Equity Inc. Form 8-K filed August 14, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1896212/000164117225023840/form8-k.htm) - [CDT Equity Inc. Form 10-K filed March 28, 2025: business overview and signatures (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1896212/000164117225001246/form10-k.htm) [CDT](https://aibio.space/companies/cdt-equity/) 2025-08-14 # CDT Equity, formerly Conduit Pharmaceuticals, says Q1 2025 financials should not be relied on Tickers [CDT](https://aibio.space/companies/cdt-equity/) The company says $0.4 million of milestone payments to Sarborg Limited were booked as research and development expense but should have been an acquired diagnostic asset. It plans to amend its first-quarter Form 10-Q. ## Key facts - **Company**: CDT Equity Inc. (NASDAQ: CDT) - **News type**: Distress - **Primary source**: [CDT Equity Inc. Form 8-K filed August 14, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1896212/000164117225023840/form8-k.htm) *The stone facade of a federal building. Photo: Carol M Highsmith, CC0, via rawpixel. The picture shows the field, not the companies named.* CDT Equity Inc. (Nasdaq: [CDT](https://aibio.space/companies/cdt-equity/)), which filed its last annual report under the name Conduit Pharmaceuticals Inc., said on August 14, 2025 that its unaudited financial statements for the three months ended March 31, 2025 should no longer be relied upon. The company reported the conclusion in a [Form 8-K filed August 14, 2025](https://www.sec.gov/Archives/edgar/data/1896212/000164117225023840/form8-k.htm) under Item 4.02, which companies use when earlier financial statements should no longer be relied upon. It plans to restate them in amendments to its quarterly report on Form 10-Q. The company is based in Naples, FL. ## What the company found CDT Equity determined on August 8, 2025, after discussions with its advisors and CBIZ CPAs P.C., its independent registered public accounting firm, that the accounting for certain milestone payments was wrong. The payments, totaling $0.4 million, were made to Sarborg Limited under a Services Agreement for the acquisition of a diagnostic tool. The tool is used to monitor clinical trials, aggregate data on an ongoing basis and track the status of intellectual property patents. The company had classified the payments as research and development expense. The 8-K says they should have been classified as an acquired diagnostic asset on the March 31, 2025 condensed consolidated balance sheet, under ASC 730. ## Which statements are affected While reviewing its financial statements for the quarter ended June 30, 2025, the company determined that changes are needed to the unaudited interim statements for the three months ended March 31, 2025. Four statements are affected: the condensed consolidated balance sheet, the statement of operations and comprehensive loss, the statement of changes in stockholders' deficit, and the statement of cash flows. The company plans to address the restatement and the related notes in amendments to the Form 10-Q for that quarter. A restatement reissues earlier results with corrections. A non-reliance notice tells investors that the original numbers should not be used while the correction is pending. The 8-K does not quantify the effect on the restated quarter beyond the $0.4 million of payments, and it gives no date for the 10-Q amendments. ## Who signed Andrew Regan, chief executive officer, signed the 8-K on August 14, 2025. The 8-K says the company's management and members of its Audit Committee discussed the matters in the report with CBIZ CPAs P.C. ## The earlier filing history The company's [annual report on Form 10-K filed March 28, 2025](https://www.sec.gov/Archives/edgar/data/1896212/000164117225001246/form10-k.htm) was filed under the Conduit Pharmaceuticals Inc. name. That report describes a merger completed on September 22, 2023 among Conduit Pharmaceuticals Limited, Murphy Canyon Acquisition Corp and Conduit Merger Sub. The 10-K was filed under the old name, while the 8-K is filed under CDT Equity Inc. ## What the notice leaves open The restatement is small in dollar terms, but the change is one of classification. Moving the payments from an expense to an asset changes how the first quarter looks to investors, and it changes the balance sheet. The 8-K does not say whether the company has identified other items under review. It also does not state whether CBIZ CPAs P.C. has completed its work on the restated quarter, and it does not say what the restated first-quarter loss will be. The report does not discuss cash, liquidity or any future funding need, even though the restated statements include the statement of cash flows. A reader needs the 10-Q amendments, when filed, to see whether the classification change touches anything beyond the research expense line. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story CDT CDT Equity Inc. NASDAQ ยท United States Open the starter desk ## More in Distress Distress ### [Mineralys takes ownership of lorundrostat patents but keeps Tanabe milestone debts](https://aibio.space/news/mineralys-takes-ownership-lorundrostat-patents-but-keeps-tanabe/) Oct 29, 2026 Distress ### [Bristol Myers Squibb drops Prothena's PRX019, ending up to $617.5 million in milestones](https://aibio.space/news/bristol-myers-squibb-drops-prothenas-prx019-ending-up-617-5-million/) Oct 29, 2026 Distress ### [LENZ Therapeutics reorganizes to cut 2027 operating expenses by more than 50%](https://aibio.space/news/lenz-therapeutics-reorganizes-cut-2027-operating-expenses-more-50/) Oct 28, 2026 --- Source page: https://aibio.space/news/cdt-equity-formerly-conduit-pharmaceuticals-says-q1-2025-financials/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "CDT Equity, formerly Conduit Pharmaceuticals", 2025-08-14, https://aibio.space/news/cdt-equity-formerly-conduit-pharmaceuticals-says-q1-2025-financials/