Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 12

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 The Nasdaq Capital Market
had been approved and the Company’s securities were  transferred to The Nasdaq Capital Market at the opening of business on May
23, 2025.

    7

Summary
of Significant Accounting Policies

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 assets and liabilities at the date of the financial
statements as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors
including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic
conditions and trends, and the assessment of the probable future outcome. Actual results could differ materially from such estimates.
Estimates and assumptions are reviewed periodically by management and changes in estimates are made as management becomes aware of changes
in circumstances surrounding the estimates. The effects of changes are reflected in the financial statements in the period that they
are determined.

Cash
and Cash Equivalents

Cash
and cash equivalents are primarily maintained with major financial institutions in the United States and the United Kingdom. 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
UK bank account, with a balance at June 30, 2025 of approximately £270,000 (or approximately $370,000) exceeds the country’s
deposit limit of £85,000 (approximately $110,000). 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 six months ended June 30, 2025.

The
Company had $3.3 million and $0.6 million in cash and cash equivalents on hand as of June 30, 2025 and December 31, 2024, respectively.
As of June 30, 2025, $0.3 million of the Company’s $3.3 million cash and cash equivalents balance was invested in money market
funds. The money market funds do not have significant liquidity restrictions that