[8-K] Conduit Pharmaceuticals Inc. Reports Material Event
CDT Equity Inc. determined its previously issued unaudited interim financial statements for the quarter ended March 31, 2025 should no longer be relied upon because $0.4 million in milestone payments to Sarborg Limited were misclassified. Those payments were recorded as research and development expense but should have been recorded as an acquired diagnostic asset on the March 31, 2025 condensed consolidated balance sheet in accordance with ASC 730. Management and the Audit Committee discussed the matter with CBIZ CPAs P.C., the independent registered public accounting firm. The company plans to amend its Quarterly Report for the Subject Period to restate and adjust the affected financial statements and related notes.
CDT Equity Inc. ha stabilito che i propri precedenti bilanci interinali non revisionati relativi al trimestre chiuso al 31 marzo 2025 non devono più essere ritenuti attendibili perché 0,4 milioni di dollari in pagamenti legati a milestone a Sarborg Limited sono stati classificati in modo errato. Tali pagamenti sono stati registrati come spese per ricerca e sviluppo, ma avrebbero dovuto essere contabilizzati come un'attività diagnostica acquisita nello stato patrimoniale consolidato abbreviato al 31 marzo 2025, in conformità con ASC 730. La direzione e il Comitato di Revisione hanno discusso la questione con CBIZ CPAs P.C., la società di revisione contabile indipendente registrata. La società intende modificare il suo Rapporto Trimestrale relativo al periodo in oggetto per ripresentare e rettificare i bilanci interessati e le relative note.
CDT Equity Inc. determinó que sus estados financieros interinos no auditados emitidos anteriormente correspondientes al trimestre terminado el 31 de marzo de 2025 ya no deben considerarse fiables porque 0,4 millones de dólares en pagos por hitos a Sarborg Limited fueron clasificados incorrectamente. Esos pagos se registraron como gastos de investigación y desarrollo, pero debieron haberse registrado como un activo diagnóstico adquirido en el balance consolidado abreviado al 31 de marzo de 2025, de conformidad con ASC 730. La dirección y el Comité de Auditoría trataron el asunto con CBIZ CPAs P.C., la firma independiente de contadores públicos registrada. La compañía planea enmendar su Informe Trimestral correspondiente al período en cuestión para reformular y ajustar los estados financieros afectados y las notas relacionadas.
CDT Equity Inc.는 2025년 3월 31일 종료 분기에 대한 이전에 발표된 미감사 중간재무제표를 더 이상 신뢰해서는 안 된다고 판단했습니다. Sarborg Limited에 대한 마일스톤 지급금 미화 40만 달러가 잘못 분류되었기 때문입니다. 해당 지급금은 연구개발비로 계상되었으나 ASC 730에 따라 2025년 3월 31일자 간략 연결 재무상태표에 취득한 진단자산으로 계상되었어야 합니다. 경영진과 감사위원회는 독립 등록 공인회계법인인 CBIZ CPAs P.C.와 이 사안을 논의했습니다. 회사는 해당 기간의 분기보고서를 수정하여 영향을 받는 재무제표와 관련 주석을 정정·조정할 계획입니다.
CDT Equity Inc. a déterminé que ses états financiers intermédiaires non audités publiés précédemment pour le trimestre clos le 31 mars 2025 ne doivent plus être considérés comme fiables, car 0,4 million de dollars de paiements liés à des jalons à Sarborg Limited ont été mal classés. Ces paiements ont été comptabilisés en charges de recherche et développement, alors qu'ils auraient dû être inscrits en tant qu'actif diagnostique acquis dans le bilan consolidé condensé au 31 mars 2025, conformément à l'ASC 730. La direction et le comité d'audit ont discuté de la question avec CBIZ CPAs P.C., le cabinet d'expertise comptable indépendant et enregistré. La société prévoit de modifier son rapport trimestriel pour la période concernée afin de retraiter et d'ajuster les états financiers affectés et les notes y afférentes.
CDT Equity Inc. hat festgestellt, dass seine zuvor veröffentlichten ungeprüften Zwischenabschlüsse für das zum 31. März 2025 endende Quartal nicht länger als verlässlich angesehen werden dürfen, weil 0,4 Millionen US-Dollar an Meilensteinzahlungen an Sarborg Limited falsch klassifiziert wurden. Diese Zahlungen wurden als Aufwendungen für Forschung und Entwicklung verbucht, hätten jedoch gemäß ASC 730 als erworbener diagnostischer Vermögenswert in der verkürzten konsolidierten Bilanz zum 31. März 2025 erfasst werden müssen. Das Management und der Prüfungsausschuss haben die Angelegenheit mit CBIZ CPAs P.C., der unabhängigen eingetragenen Wirtschaftsprüfungsgesellschaft, erörtert. Das Unternehmen beabsichtigt, seinen Quartalsbericht für den betreffenden Zeitraum zu ändern, um die betroffenen Abschlüsse und die zugehörigen Anhangangaben neu darzustellen und anzupassen.
- Company plans to amend the Quarterly Report for the Subject Period to correct and restate affected financial statements and notes
- Independent auditor involvement — the matter was reviewed with CBIZ CPAs P.C., the company's independent registered public accounting firm
- Audit Committee engagement — management and Audit Committee members discussed the issue, indicating governance oversight of the correction
- Non-reliance — previously issued unaudited interim financial statements for the quarter ended March 31, 2025 should no longer be relied upon
- Accounting misclassification — $0.4 million in milestone payments to Sarborg Limited was incorrectly expensed as research and development instead of recorded as an acquired diagnostic asset
- Restatement required — condensed consolidated balance sheet, statement of operations and comprehensive loss, statement of changes in stockholders' deficit and statement of cash flows will be adjusted
Insights
TL;DR Reclassification of $0.4M from R&D to an acquired asset requires a restatement and amendment of the interim filings.
The accounting correction moves $0.4 million of previously recorded research and development expense to an acquired diagnostic asset on the March 31, 2025 balance sheet under ASC 730. That adjustment will reduce reported expense and increase assets for the Subject Period, requiring amended condensed consolidated financial statements and notes. The engagement of CBIZ CPAs P.C. and Audit Committee involvement indicates the company is following established remediation and disclosure paths.
TL;DR A non-reliance notice signals a control or reporting error that the Audit Committee and auditors are addressing.
The company formally notified stakeholders that previously issued unaudited statements for the quarter ended March 31, 2025 should not be relied upon due to a classification error. Management and the Audit Committee reviewed the matter with the independent registered public accounting firm, and the company will amend the Quarterly Report for the Subject Period. This procedural response follows governance protocols for correcting interim financial reporting.
CDT Equity Inc. ha stabilito che i propri precedenti bilanci interinali non revisionati relativi al trimestre chiuso al 31 marzo 2025 non devono più essere ritenuti attendibili perché 0,4 milioni di dollari in pagamenti legati a milestone a Sarborg Limited sono stati classificati in modo errato. Tali pagamenti sono stati registrati come spese per ricerca e sviluppo, ma avrebbero dovuto essere contabilizzati come un'attività diagnostica acquisita nello stato patrimoniale consolidato abbreviato al 31 marzo 2025, in conformità con ASC 730. La direzione e il Comitato di Revisione hanno discusso la questione con CBIZ CPAs P.C., la società di revisione contabile indipendente registrata. La società intende modificare il suo Rapporto Trimestrale relativo al periodo in oggetto per ripresentare e rettificare i bilanci interessati e le relative note.
CDT Equity Inc. determinó que sus estados financieros interinos no auditados emitidos anteriormente correspondientes al trimestre terminado el 31 de marzo de 2025 ya no deben considerarse fiables porque 0,4 millones de dólares en pagos por hitos a Sarborg Limited fueron clasificados incorrectamente. Esos pagos se registraron como gastos de investigación y desarrollo, pero debieron haberse registrado como un activo diagnóstico adquirido en el balance consolidado abreviado al 31 de marzo de 2025, de conformidad con ASC 730. La dirección y el Comité de Auditoría trataron el asunto con CBIZ CPAs P.C., la firma independiente de contadores públicos registrada. La compañía planea enmendar su Informe Trimestral correspondiente al período en cuestión para reformular y ajustar los estados financieros afectados y las notas relacionadas.
CDT Equity Inc.는 2025년 3월 31일 종료 분기에 대한 이전에 발표된 미감사 중간재무제표를 더 이상 신뢰해서는 안 된다고 판단했습니다. Sarborg Limited에 대한 마일스톤 지급금 미화 40만 달러가 잘못 분류되었기 때문입니다. 해당 지급금은 연구개발비로 계상되었으나 ASC 730에 따라 2025년 3월 31일자 간략 연결 재무상태표에 취득한 진단자산으로 계상되었어야 합니다. 경영진과 감사위원회는 독립 등록 공인회계법인인 CBIZ CPAs P.C.와 이 사안을 논의했습니다. 회사는 해당 기간의 분기보고서를 수정하여 영향을 받는 재무제표와 관련 주석을 정정·조정할 계획입니다.
CDT Equity Inc. a déterminé que ses états financiers intermédiaires non audités publiés précédemment pour le trimestre clos le 31 mars 2025 ne doivent plus être considérés comme fiables, car 0,4 million de dollars de paiements liés à des jalons à Sarborg Limited ont été mal classés. Ces paiements ont été comptabilisés en charges de recherche et développement, alors qu'ils auraient dû être inscrits en tant qu'actif diagnostique acquis dans le bilan consolidé condensé au 31 mars 2025, conformément à l'ASC 730. La direction et le comité d'audit ont discuté de la question avec CBIZ CPAs P.C., le cabinet d'expertise comptable indépendant et enregistré. La société prévoit de modifier son rapport trimestriel pour la période concernée afin de retraiter et d'ajuster les états financiers affectés et les notes y afférentes.
CDT Equity Inc. hat festgestellt, dass seine zuvor veröffentlichten ungeprüften Zwischenabschlüsse für das zum 31. März 2025 endende Quartal nicht länger als verlässlich angesehen werden dürfen, weil 0,4 Millionen US-Dollar an Meilensteinzahlungen an Sarborg Limited falsch klassifiziert wurden. Diese Zahlungen wurden als Aufwendungen für Forschung und Entwicklung verbucht, hätten jedoch gemäß ASC 730 als erworbener diagnostischer Vermögenswert in der verkürzten konsolidierten Bilanz zum 31. März 2025 erfasst werden müssen. Das Management und der Prüfungsausschuss haben die Angelegenheit mit CBIZ CPAs P.C., der unabhängigen eingetragenen Wirtschaftsprüfungsgesellschaft, erörtert. Das Unternehmen beabsichtigt, seinen Quartalsbericht für den betreffenden Zeitraum zu ändern, um die betroffenen Abschlüsse und die zugehörigen Anhangangaben neu darzustellen und anzupassen.
FAQ
What did CDT (CDT) disclose in this 8-K?
How much was misclassified by CDT?
To whom were the milestone payments made?
Which accounting guidance applies to the correction?
What will CDT do to correct the error?
Who reviewed the matter with CDT management?
