Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 620

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 620
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 had net
operating loss (“NOL”) carryforwards for foreign purposes of approximately $4.7
million and $1.0
million, respectively, which carryforward indefinitely. Net operating loss (NOL) carryforwards are subject to limitations in
the event of a change in control under Section 382 of the Internal Revenue Code. This section limits the amount of taxable income
that can be offset by NOLs after an ownership change. The limitation is calculated as the value of the old loss corporation
multiplied by the long-term tax-exempt rate. If the new loss corporation does not continue the business enterprise of the old loss
corporation for a specified period, the NOL carryforwards may be disallowed. The Company has not yet conducted a Section 382 study
to determine whether any ownership changes have occurred that would impose annual limitations on its ability to utilize its NOL
carryforwards. Until such a study is completed, there is substantial uncertainty regarding the amount of NOL carryforwards that
could be utilized annually to offset future taxable income.

The
Company establishes a valuation allowance when it is more likely than not that the Company’s recorded net deferred tax asset
will not be realized. In determining whether a valuation allowance is required, the Company must take into account all positive and
negative evidence with regard to the utilization of a deferred tax asset. As of December 31, 2024 and December 31, 2023, the
valuation allowance for deferred tax assets totaled approximately $4.5
million and $1.4
million, respectively.

13.
Common Stock and Preferred Stock

Common
Stock

As
of December 31, 2024, and December 31, 2023, the Company has authorized the issuance of up to 250,000,000 shares
of common stock, respectively, at a par value $0.0001 per
share.

As
of December 31, 2024, and December 31, 2023 there were 1,384,801 and 738,295 shares of Common Stock issued and outstanding, respectively.
No cash dividends have been declared or paid as of December 31, 2024.

Holders
of the Common Stock are entitled to one vote per share, and to receive dividends, on and if declared by the board of directors and, upon
liquidation or dissolution, are entitled to receive all assets available for distribution, subordinate to the rights, preferences, and