Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 9

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 9
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 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 has an alternative future use, namely using its predictive modeling capability to track and evaluate
delisted patents in the marketplace, potentially facilitating strategic entry into de-prioritized asset markets that might otherwise be
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 or
settled. The effects of changes in tax rates on deferred tax assets and liabilities are recognized in the unaudited condensed consolidated
statements of operations and comprehensive loss in the period that includes the enactment date. The measurement of deferred tax assets
is reduced, if necessary, by a valuation allowance for any tax benefits of which future realization is uncertain.

Net
Loss per Share Attributable to Common Stockholders

The
Company calculates basic and diluted net loss per share under ASC Topic 260