Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 577

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 577
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, it is uncertain when, if ever, the Company will realize significant revenue from royalties or product sales.

The
Company licenses clinical assets from AstraZeneca. See Note 10. If there is a breach or other termination of such agreements, there could
be a material adverse effect on the Company’s business, financial condition, operating results, and prospects.

The Company is also subject
to risks associated with the Nasdaq Stock Market Correspondence and Subsequent Nasdaq Capital Market Listing. See note 20 for further
details.

Summary
of Significant Accounting Policies

Cash
and Cash Equivalents

Cash
and cash equivalents are primarily maintained with major financial institutions in the United States, United Kingdom, and Switzerland.
The Company considers cash equivalents to be short-term, highly liquid investments that (a) are readily convertible into known amounts
of cash, (b) are traded and held for cash management purposes, and (c) have original maturities of three months or less at the time of
purchase. The Switzerland bank accounts holding cash balances are uninsured, and the UK bank account, with a year-end balance of approximately
£100,000 (or approximately $125,000) exceeds the country’s deposit limit of £85,000 (approximately $107,000). The Company’s
US depository bank participates in the Demand Deposit Marketplace program, insuring deposits up to $10 million by sweeping amounts in
excess of the $250,000 deposit insurance limit among participating banks. The Company has not experienced any losses on any accounts
through the year ended December 31, 2024.

The
Company had $0.6 million
and $4.2 million
in cash and cash equivalents on hand as of December 31, 2024 and December 31, 2023, respectively. As of December 31, 2024, $0.2
million of the Company’s $0.6
million cash and cash equivalents balance was
invested in money market funds. The money market funds do not have significant liquidity restrictions that would require the exclusion
from cash and cash equivalents.

Property,
Plant and Equipment

Property,
plant and equipment are initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the
estimated useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise
disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting