Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 505

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 505
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 a special meeting
of the stockholders to approve the full conversion of the August 2024 Nirland Note on or before January 9, 2025, then the Company
shall be obligated to pay Nirland a penalty of $100,000 per day until the special meeting is held. The special meeting was held on
January 9, 2025, in which stockholder approval was obtained. In addition, the existing conversion rate was amended to be two and one
half times the sum of (x) the portion of the principal to be converted, redeemed or otherwise with respect to which this
determination is being made and (y) all accrued and unpaid interest (including default interest) with respect to such portion of the
principal amount, if any divided by $0.10, pre-split in January 2025 (or following any reverse splits that may occur in a ratio greater than 10 to 1, the lower
of such reverse split price and the market price per share at the time of the conversion date, but in no event less than $1.00),
subject to adjustment as provided therein and to take into account any future share splits or reverse splits. On January 24, 2025, the Reverse Stock Split became effective, resulting in every 100 shares of our common stock
issued or outstanding becoming one new share of our common stock, resulting in the conversion price increasing to $6.86 as of December
31, 2024.

On December 9, 2024, Nirland
exercised their conversion option and converted $0.1 million of principal for 23,000 shares of common stock pursuant to the rules and
regulations of the NASDAQ. As of December 31, 2024, $2.6 million of principal and accrued interest remains outstanding.

October
2024 Nirland Note

On
October 28, 2024, the Company issued a promissory note (the “October 2024 Nirland Note”) to Nirland in the original
principal amount of $0.6 million in exchange for funds in such amount. The October 2024 Nirland Note bears interest at a rate of 12%
per annum, is due and payable semi-annually in arrears, and matures on October 31, 2025. If an event of default under and as defined
in the Nirland Note occurs, the interest rate will be increased to 18% per annum or to the maximum rate