Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 83

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 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 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 principal or most advantageous market for the asset or liability
in an orderly transaction between market participants. In determining fair value, the Company used various valuation approaches. A fair
value hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes
the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that
market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company.

Unobservable
inputs reflect the Company’s assumption about the inputs that market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels, based on the
inputs, as follows:

    ●
    Level
    1-Valuations based on quoted prices for identical instruments in active markets. Since valuations are based on quoted prices that
    are readily and regularly available