Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 86

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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, the Company has one purchased asset, a diagnostic tool used to monitor clinical trials, aggregate data on an ongoing
basis and tracking intellectual property patent status. The Company determined that the diagnostic tool also has the alternative future
use of utilizing the predictive modeling capability to track and evaluate delisted patents in the marketplace to potentially facilitate
strategic entry into de-prioritized asset markets that might be otherwise overlooked by other market participants. The asset is depreciated
on a straight-line basis over its useful life of two years.

    9

Income
Taxes

ASC
Topic 740, Income Taxes, sets forth standards for financial presentation and disclosure of income tax liabilities and expense.
Interest and penalties recognized have been classified in the unaudited condensed consolidated statements of operations and comprehensive
loss as income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences
between the financial statement carrying amount of existing assets and liabilities and their respective tax bases and operating losses
carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss in the
period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for
any tax benefits of which future realization is uncertain.

Net
Loss per Share Attributable to Common Stockholders

The Company calculates basic and diluted net loss per share
under ASC Topic 260, Earnings Per Share. Basic net loss per share is computed by dividing the net loss by the
number of weighted-average common shares outstanding for the period. Diluted net loss is computed by adjusting net loss based on the
impact of any dilutive instruments. Diluted net loss per share is computed by dividing the diluted net loss by the number of weighted-average
common shares outstanding for the period including the effect, if dilutive, of any instruments that can be settled in common shares. When
computing diluted net loss per share, the numerator is adjusted to eliminate the effects that have been recorded in net loss (net of tax,
if any) attributable to any liability-classified dilutive instruments.

Warrants

The
Company determines the accounting classification of Warrants as either liability or equity by first assessing whether the Warrants meet
liability classification in accordance with ASC Topic 480