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CDT Equity Inc. (NASDAQ:CDT), a company currently valued at $5.33 million and showing weak financial health according to InvestingPro analysis, announced Thursday that its previously issued unaudited financial statements for the quarter ended March 31, 2025, should no longer be relied upon. The company said this decision follows discussions with its advisors and its independent registered public accounting firm, CBIZ CPAs P.C., according to a statement based on a recent SEC filing.
The company, which has been rapidly burning through cash with a negative free cash flow yield, determined that certain milestone payments totaling $0.4 million made to Sarborg Limited under a services agreement were incorrectly classified as research and development expenses. These payments should have been recorded as an acquired diagnostic asset on the company’s condensed consolidated balance sheet as of March 31, 2025, in accordance with ASC 730 accounting standards.
The company plans to restate and adjust its unaudited financial statements for the quarter ended March 31, 2025, including related notes, to correct the accounting treatment of the milestone payments. These adjustments will be reflected in amendments to the Quarterly Report on Form 10-Q for that period.
CDT Equity stated that its management and members of the Audit Committee of the Board of Directors have discussed the matter with CBIZ CPAs P.C. The company also noted that the review of its financial statements for the quarter ended June 30, 2025, led to the identification of the need for these changes.
CDT Equity Inc. is incorporated in Delaware and is listed on The Nasdaq Stock Market LLC under the ticker symbol CDT. The company’s redeemable warrants trade under the symbol CDTTW.
All information is based on a press release statement and the company’s Form 8-K filed with the Securities and Exchange Commission.
In other recent news, Conduit Pharmaceuticals Inc. has announced several key developments. The company has successfully transitioned its common stock listing to the Nasdaq Capital Market, effective May 23, 2025, after meeting the necessary Bid Price and Equity Requirements. This move ensures that Conduit Pharmaceuticals remains compliant with Nasdaq’s listing standards, following a previous announcement of compliance with minimum bid price and stockholders’ equity standards. Additionally, the Nasdaq Hearing Panel has placed a one-year Discretionary Panel Monitor starting from May 15, 2025, to ensure ongoing adherence to these standards.
Moreover, Conduit Pharmaceuticals’ board of directors has approved a 1-for-15 reverse stock split, which was authorized by stockholders at a special meeting on May 5, 2025. This reverse stock split, effective from May 19, 2025, will consolidate every fifteen shares of issued and outstanding common stock into one share. The shares are expected to trade on a split-adjusted basis on the Nasdaq Global Market from May 20, 2025. Despite the consolidation, the par value per share will remain unchanged, and adjustments will be made to equity awards, convertible securities, and warrants.
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