Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 849

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 849
---
 made under third-party licensing agreements; and

    ●
    direct
    and allocated costs related to facilities, information technology, personnel and other overhead.

Advance
payments that we make for goods or services to be received in the future for use in research and development activities are recorded
as prepaid expenses. Such amounts are recognized as an expense as the goods are delivered or consumed or the related services are performed,
or until it is no longer expected that the goods will be delivered, or the services rendered.

General
and Administrative Expenses

General
and administrative expenses consist primarily of salaries and related costs for personnel in executive management, finance, corporate
and business development, and administrative functions. General and administrative expenses also include legal fees relating to patent
and corporate 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