Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 74

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 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
year-end balance of approximately £206,000
(or approximately $266,000)
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 three
months ended March 31, 2025.

The
Company had $2.1 million and $0.6 million in cash and cash equivalents on hand as of March 31, 2025 and December 31, 2024, respectively.
As of March 31, 2025, $4,000  of the Company’s $2.1 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 

Fair
Value Measurements

ASC
Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value, and expands
disclosures about fair value measurements. Fair value is to be determined based on the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the