Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 185

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 185
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 Unrealized foreign currency transaction gain 
     2  
     39 
  
    Other 
     7  
     115 
  
    Total other income: 
     5,048  
     6,754 
  
    Other expense: 

    Loss on issuance of Vela option 
     -  
     987 
  
    Change in fair value of convertible notes payable 
     -  
     426 
  
    Interest expense 
     577  
     211 
  
    Amortization of debt issuance costs 
     929  
     - 
  
    Loss on issuance of warrants 
     2,710  
     - 
  
    Loss on Debt Extinguishment 
     3,179  
     - 
  
    Realized foreign currency transaction loss 
     16  
     403 
  
    Other expense 
     20  
     - 
  
    Total other expense 
     7,431  
     2,027 
  
    Total other (expense) income, net 
    $(2,383) 
    $4,727 

18.
Warrants

Upon
the closing of the Merger, the Company assumed (i) the warrants initially included in the MURF units issued in MURF’s initial public
offering (the “Publicly Traded Warrants”), and (ii) the warrants that were included in the private placement units issued
to the Sponsor simultaneously with the closing of MURF’s initial public offering (the “Private Placement Warrants”).
In connection with the Merger, the Company also issued warrants to the PIPE Investors (the “PIPE Warrants”) pursuant to the
Subscription Agreements and to an advisor (the “A.G.P. Warrants,” and together with the PIPE Warrants, the “Liability
Classified Warrants”) pursuant to the Company’s engagement agreement with the advisor.

The
Company determined that the settlement amount of the Publicly Traded Warrants and the Private Placement Warrants would equal the difference
between the fair value of a fixed number of shares and a fixed monetary amount (or a fixed amount of a debt instrument) and must be classified
as equity, while the settlement amount of the Liability Classified Warrants would not equal the difference between the fair value of
a fixed number of shares and a fixed monetary amount (or a fixed amount of a debt instrument) and must be classified