Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 443

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 443
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    Fair value at Issuance 
     7,899  
     229 
  
    Conversion of convertible note 
     (92) 
     - 
  
    Change in fair value 
     (1,951) 
     (91)
  
    Balance as of December 31, 2024 
    $5,856  
    $138 

Convertible
Notes Payable

As
discussed in Note 7, during on October 31, 2024, the Company and Nirland agreed to amend the August 2024 Nirland Note, whereby the
August 2024 Nirland Note was amended to provide for the conversion of the August 2024 Nirland Note into shares of common stock, at
Nirland’s discretion, in a multiple of any unpaid amounts, if not otherwise previously paid, pursuant to the conversion rate
contained therein. The August 2024 Nirland Note was then amended for a second time on November
22, 2024.Additionally, as discussed in Note 7, during November 2024, the Company issued to A.G.P. a convertible promissory
note (the “A.G.P. Convertible Note”) in the principal amount of $5.7
million to evidence the A.G.P.’s currently owed deferred commission payable. The Company elected to account for the August
2024 Nirland Note and A.G.P. Convertible Note (collectively the “Convertible Notes Payable”) at fair value. The fair
value of the Convertible Notes Payable is estimated each period using a binomial lattice model. Significant estimates in the
binomial lattice model include the Company’s stock price, volatility, risk-free rate, corporate bond yield, credit
spread, probability of default, and recovery upon default.

The
fair value of the August 2024 Nirland Note and A.G.P. Convertible Note as of December 31, 2024 were estimated using a binomial
lattice model. 

The following
table outlines the range of significant unobservable inputs used in calculating the fair value of the August 2024 Nirland Note as of
the dates noted below:

Schedule
of Fair Value  of Assumptions

    October 31,

2024

    November 22,

2024

    December 31,
                                                                                2024 
  
    Stock Price
     
    $
    9.10

    $
    10.40