Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 15

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
---
    functions;

    ●
    acquisition
    costs related to the purchase of licensed intellectual property;

    ●
    costs
    related to compliance with quality and regulatory requirements;

    ●
    payments
    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.

Purchased
Research and Development Assets

The
Company accounts for its research and development costs in accordance with ASC 730, Research and Development. ASC 730 requires
that research and development are generally recognized as an expense as incurred. However, some costs associated with research and development
activities that have an alternative future use may be capitalizable. Purchases of assets related to research and development activities
are evaluated based on the usefulness to the Company currently and for alternative future uses. Purchased research and development assets
with alternative future use are recorded at cost and subsequently amortized using the straight-line method over their estimated useful
lives. To date, the Company has one purchased asset, a diagnostic tool used to monitor clinical trials, aggregate data on an ongoing
basis and tracking intellectual property patent status. The Company determined that the diagnostic tool also has the alternative future
use of utilizing the predictive modeling capability to track and evaluate delisted patents in the marketplace to potentially facilitate
strategic entry into de-prioritized asset markets that might be otherwise overlooked by other market participants. The asset is depreciated
on a straight-line basis over its useful life of two years.

    9

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 unaudited condensed consolidated statements of operations and comprehensive
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