Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 47

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 of exercisability. There is no established public trading market for the March 2024 Warrants.
Notwithstanding the foregoing, the March 2024 Warrants shall vest, and not be subject to forfeiture, with respect to 25% of such March
2024 Warrants commencing on the 90th day after the date of the March Lock-Up Agreement and 25% on each subsequent 90-day anniversary,
in each case vesting only if the holder agrees to continue to have its shares of Common Stock remain locked up pursuant to the March
Lock-Up Agreement on such date.

    27

April
2024 Warrants

On
April 20, 2024, the Company issued in a private placement equity classified Common Stock purchase warrants (the “April 2024 Warrants”)
to shareholders’ of the Company to purchase up to an aggregate 965 shares of the Company’s Common Stock, in exchange for
(1) $187.50 per warrant, and (2) entering into a lock-up with respect to the shares of Common Stock held by such holders (the “April
Lock-Up Agreement”). 605 of the total April 2024 Warrants issued were issued to directors, related parties and management of the
Company. The Company determined that the April 2024 Warrants should be classified within equity and estimated the fair value of the warrants
as of April 20, 2024, using a Black-Scholes option-pricing model utilizing the following assumptions:

    April 20, 2024 
  
    Closing stock price 
    $4,620 
  
    Contractual exercise price 
    $4,680 
  
    Risk-free rate 
     4.81%
  
    Estimated volatility 
     78.3%
  
    Time period to expiration 
     3 Years 

A
fair value of $2.4 million was calculated and recorded within additional paid-in capital on the condensed consolidated balance sheets.
The April 2024 Warrants are not exercisable until one year after their date of issuance. Each April 2024 Warrant is exercisable into
one share of the Company’s Common Stock at a price per share of $4,680 (as adjusted from time to time in accordance with the terms
thereof) for a two-year period after the date of exercisability. There is no established public trading market for the April 2024 Warrants.
Notwithstanding the foregoing, the April 2024 Warrants shall vest