Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 17

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 value of a fixed
number of the Company’s equity shares, and (b) a fixed monetary amount or a fixed amount of a debt instrument issued by the Company.
The Company determined that the settlement amount of the Equity Classified Warrants would equal the difference between the fair value
of a fixed number of shares and a fixed monetary amount (or a fixed amount of a debt instrument) and must be classified as equity, while
the settlement amount of the Liability Classified Warrants would not equal the difference between the fair value of a fixed number of
shares and a fixed monetary amount (or a fixed amount of a debt instrument) and must be classified as a liability.

The
Equity Classified Warrants are recorded in stockholders’ equity (deficit) and the Liability Classified Warrants are recorded
as liabilities in the Condensed Consolidated Balance Sheet. The Liability Classified Warrants are remeasured each period with
changes in fair value recorded in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

    10

Foreign
Currency Translation

The
Company translated the assets and liabilities of foreign subsidiaries from their respective functional currency, the British pound, to
United States dollars at the appropriate spot rates as of the balance sheet date. Income and expenses of operations are translated to
United States dollars using weighted average exchange rates during the year. The foreign subsidiaries use the local currency as their
functional currency. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive
income in the accompanying consolidated statements of changes in stockholders’ equity (deficit). Non-monetary items in the subsidiaries’
functional currency are re-measured into the reporting currency at the historical exchange rate (i.e., the rate of exchange at the date
of the transaction).

Recently
Issued Accounting Standards Not Yet Adopted

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”).
ASU 2023-09 modifies the reporting requirements for income tax disclosures related to effective tax rates and cash income taxes paid.
Pursuant to ASU 2023-09, public business entities are required to disclose certain categories in the income tax rate reconciliation,
as well as additional information for reconciling items that meet a specific quantitative threshold. Additionally, ASU 2023-09 requires
annual disclosures of income taxes paid for all entities, including the amount of income taxes paid,