Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 80

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 80
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0.1 million.

Net
cash provided by financing activities for the nine months ended September 30, 2024, was $1.9 million, resulting from $1.6 million of
proceeds on the issuance of the promissory note to Nirland, $0.1 million of proceeds from the issuance of the April 2024 Warrants and
a $0.1 million bank overdraft.

Contractual
Obligations and Other Commitments

Laboratory
Lease

We
are the lessee under a laboratory space lease. The annual rent payments are $0.1 million for the years ending December 31, 2025 and December
31, 2026. The laboratory space lease has a remaining lease term of approximately two years.

Critical
Accounting Estimates

The
preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect
the amounts reported in the Consolidated Financial Statements. These estimates, judgments and assumptions are evaluated on an ongoing
basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable at that time, the
results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ materially from those estimates. The accounting policies that reflect our more significant
estimates, judgments and assumptions and which we believe are the most critical to aid in fully understanding and evaluating our reported
financial results include the following:

Fair
Value of Convertible Notes

The
Company has elected the fair value measurement option for convertible debt with embedded derivatives that would otherwise require bifurcation
and has recorded the entire hybrid financial instrument at fair value under the guidance in ASC Topic 825, Financial Instruments.
To value the convertible debt, the Company utilizes Binomial Lattice Pricing Models. The Binomial Lattice Pricing Models involve the
construction of various intermediate lattices: stock price tree, conversion value tree, conversion probability tree, and discount rate
tree. In doing so, we assume the holders act rationally to maximize return and minimize cost at each decision point. We computed the
notes payoff at maturity and at intermediate decision nodes based upon the better of (i) conversion or (ii) repayment of principal and
interest.

The
significant inputs and assumptions used to estimate the fair value include: (i) the Company’s stock price; (ii) the term of the
convertible debt