CDT Equity Inc. (CDT): auditor change — Conduit Pharmaceuticals restates 2023 quarterly results on legal expense miscapitalization; non-reliance

CDT Equity Inc.

Previously issued unaudited financials for Q1, Q2, Q3 2023 should no longer be relied upon due to misclassification of legal expenses.
Legal expenses related to business combination and PIPE financing were expensed but should have been capitalized, reducing quarterly expenses by $493k, $402k, $639k respectively.
Restatement adjustments understated net income (loss), understated prepaid expenses, and overstated additional paid-in capital; deemed material individually and in aggregate.
Company will incorporate the corrections in footnotes of its upcoming 10-K annual report; discussed with auditor Marcum LLP.
Marcum LLP has provided a letter agreeing with the statements in this 8-K, attached as Exhibit 7.1.

item 4.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

CDT Equity Inc. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: Marcum LLP

Exact text from the filing

the Company’s previously issued unaudited financial statements, and notes related thereto, for the Subject Periods (as defined below) should no longer be relied upon due to the advised restatements described below pertaining to the accounting treatment of certain legal expenses previously incurred.

View on SEC.gov

8 auditor changes filed in the last 30 days. Browse all auditor changes →

CDT Equity Inc. filing history →

Source: SEC EDGAR

accession 0001493152-24-014883

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.