Conduit Pharmaceuticals Inc. has announced a regulatory issue concerning the non-reliance on its previously issued financial statements for the quarter ending March 31, 2025. After consultations with advisors and its independent auditing firm, CBIZ CPAs P.C., the company determined that certain milestone payments totaling $0.4 million to Sarborg Limited, initially classified as research and development expenses, should have been recorded as an acquired diagnostic asset. This misclassification affected several aspects of the company's financial reports, prompting a restatement and adjustment of its unaudited interim financial statements. The company plans to address these changes in its amended Quarterly Report on Form 10-Q. The management and Audit Committee have been actively discussing this issue with their auditors to ensure proper compliance and accuracy moving forward.