Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 136

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 136
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 period. As of December 31, 2024, property, plant and equipment primarily consisted of leasehold improvements.

Leases

In
accordance with ASC 842, Leases (ASC 842), the Company records a right-of-use (ROU) asset and a lease liability on the balance sheet
for all leases with terms longer than 12 months and classifies them as either operating or finance leases.

At
the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and
circumstances present and the classification of the lease including whether the contract involves the use of a distinct identified asset,
whether the Company obtains the right to substantially all the economic benefit from the use of the asset, and whether the Company has
the right to direct the use of the asset. Leases with a term greater than one year are recognized on the balance sheet as ROU assets,
lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases
with terms of one year or less under practical expedient in paragraph ASC 842-20-25-2. For contracts with lease and non-lease components,
the Company has elected not to allocate the contract consideration, and to account for the lease and non-lease components as a single
lease component.

Lease
liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term.
The implicit rate within our operating leases is generally not determinable and, therefore, the Company uses the incremental borrowing
rate at the lease commencement date to determine the present value of lease payments. The determination of the Company’s incremental
borrowing rate requires judgment. The Company determines the incremental borrowing rate for each lease using our estimated borrowing
rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. 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