Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 6

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 6
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deposit limit of £85,000 (approximately $114,000). The Company’s US depository bank participates in the Demand Deposit Marketplace
program, insuring deposits up to $10 million by sweeping amounts in excess of the $250,000 deposit insurance limit among participating
banks. The Company has not experienced any losses on any accounts through the nine months ended September 30, 2025.

The
Company had $3.8 million and $0.6 million in cash and cash equivalents on hand as of September 30, 2025 and December 31, 2024, respectively.
As of September 30, 2025, $4 thousand of the Company’s $3.8 million cash and cash equivalents balance was invested in money market
funds. The money market funds do not have significant liquidity restrictions that would require their exclusion from cash and cash equivalents.

Digital
Assets

Digital
assets are included in current assets in the consolidated balance sheets. Digital assets are accounted for as indefinite-lived intangible
assets and are initially measured in accordance with FASB Accounting Standards Codification (“ASC”) Topic 350 - Intangibles-Goodwill
and Other. The Company measures gains or losses on the disposition of digital assets in accordance with the first-in-first-out (“FIFO”)
method of accounting. Refer to Note 3, Digital Assets, for further information regarding the Company’s impact of the adoption of
ASU 2023-08.

As
of September 30, 2025, the Company held Bitcoin (“BTC”) as digital assets totaling approximately $1.0
million. The Company did not hold any digital assets as of December 31, 2024. Bitcoin is classified on our balance sheet as a
current asset due to the Company’s ability to sell it in a highly liquid marketplace and its intent to liquidate its Bitcoin
to support operations when needed. As of September 30, 2025, the Company determined that there were no impairments of its digital
assets.

Fair
Value Measurements

ASC
Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value, and
expands disclosures about fair value measurements. Fair value is to be determined based on the exchange price that would be received
for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants. In determining fair value, the Company