Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 728

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 728
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 matters; professional fees for accounting, auditing, tax, and administrative consulting services; insurance costs;
administrative travel expenses and other operating costs.

Income
Taxes

ASC
Topic 740, Income Taxes, sets forth standards for financial presentation and disclosure of income tax liabilities and expense.
Interest and penalties recognized have been classified in the consolidated statements of operations and comprehensive income (loss) as
income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between
the financial statement carrying amount of existing assets and liabilities and their respective tax bases and operating losses carried
forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change
in tax rates is recognized in the consolidated statements of operations and comprehensive income (loss) in the period that includes the
enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits of which
future realization is uncertain.

    F-11

Earnings/(Net
Loss) per Share 

The
Company calculates basic and diluted earnings/(net loss) per share under ASC Topic 260, Earnings Per Share. Basic earnings/(net
loss) per share is computed by dividing the net income/(loss) by the number of weighted-average common shares outstanding for the period.
Diluted earnings/(net loss) is computed by adjusting net income/(loss) based on the impact of any dilutive instruments. Diluted earnings/(net
loss) per share is computed by dividing the diluted net income/(loss) by the number of weighted-average common shares outstanding for
the period including the effect, if dilutive, of any instruments that can be settled in common shares. When computing diluted net income/(loss)
per share, the numerator is adjusted to eliminate the effects that have been recorded in net income/(loss) (net of tax, if any) attributable
to any liability-classified dilutive instruments.

Warrants

The
Company determines the accounting classification of Warrants as either liability or equity by first assessing whether the Warrants meet
liability classification in accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). Under ASC 480, a
financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies
a conditional obligation, that the issuer must or