Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 285

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 285
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. The
operating lease ROU asset also includes any lease prepayments, offset by lease incentives.

An
option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain
we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option.

    F-9

Use
of Estimates

The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial
statements as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors
including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic
conditions and trends, and the assessment of the probable future outcome. Actual results could differ materially from such estimates.
Estimates and assumptions are reviewed periodically by management and changes in estimates are made as management becomes aware of changes
in circumstances surrounding the estimates. The effects of changes are reflected in the financial statements in the period that they
are determined.

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 used various valuation approaches. A fair
value hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes
the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that
market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company.

Unobservable
inputs reflect the Company’s assumption about the inputs that market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels, based on the
inputs, as follows:

    ●
    Level
    1—Valuations based on quoted prices for identical instruments in active markets. Since valuations are based on quoted prices
    that are readily and regularly