Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 163

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 163
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 the dividend yield. The use of these valuation models requires the input of highly subjective assumptions. Any change to these
inputs could produce significantly higher or lower fair value measurements and result in a material change within the financial statements.

Contingencies

In
the ordinary course of business, we are involved in various legal proceedings that are complex in nature and have outcomes that are difficult
to predict. We describe our legal proceedings and other matters that are significant or that we believe could become significant in Note
14 to the consolidated financial statements. We record accruals for loss contingencies to the extent that we conclude it is probable
that a liability has been incurred and the amount of the related loss can be reasonably estimated. We evaluate, on a quarterly basis,
developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that has
been accrued previously or modifications to contingency disclosures that are considered material.

Emerging
Growth Company Status and Smaller Reporting Company Status

The
Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under
the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of
the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period
for complying with new or revised accounting standards that have different effective dates for public and private companies until the
earlier of the date that: (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended
transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with
the new or revised accounting pronouncements as of public company effective dates.

Upon
closing of the Merger, the surviving company remained an emerging growth company, as defined by the JOBS Act until the earliest of (i)
the last day of the combined entity’s first fiscal year following the fifth anniversary of the completion of MURF’s initial
public offering, (ii) the last day of the fiscal year in which the combined entity has total annual gross revenue of at least $1.235
billion, (iii) the last day of the fiscal year in which the combined entity is deemed to be a large accelerated filer, which means the
market value of the combined entity’s Common Stock that is held by non