Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 43

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 adjustment. The private placement units (including the Class A common
stock issuable upon exercise of the warrants included in the private placement units) were not transferable, assignable, or saleable
until 30 days after the completion of a Merger, subject to certain exceptions.

Upon
the closing of the Merger, the Company assumed the Publicly Traded Warrants and Private Placement Warrant. The Publicly Traded Warrant
and Private Placement Warrant were amended to entitle each holder to purchase one share of the Company’s Common Stock.

    24

March
2024 Warrants

On
March 20, 2024, the Company issued in a private placement equity classified common stock purchase warrants (the “March 2024 Warrants”)
to an investor to purchase up to an aggregate 2,600 shares of the Company’s Common Stock, in exchange for entering into a lock-up
with respect to the shares of common stock held by such holder (the “March Lock-Up Agreement”). The Company recognized at
$0.5 million loss on the issuance of the warrants during the three months ended March 31, 2024. The Company determined that the March
2024 Warrants should be classified within equity and estimated the fair value of the warrants issued as of March 20, 2024, using a Black-Scholes
option-pricing model utilizing the following assumptions:

 Schedule
of Black-Scholes Option Pricing Model 

    March 20, 2024 
  
    Closing stock price 
    $347 
  
    Contractual exercise price 
    $318 
  
    Risk-free rate 
     4.41%
  
    Estimated volatility 
     78.5%
  
    Time period to expiration 
     3 Years 

A
fair value of $0.5 million was calculated and recorded within additional paid-in capital on the condensed consolidated balance sheets.
The March 2024 Warrants are not exercisable until one year after their date of issuance. Each March 2024 Warrant is exercisable into
one share of the Company’s Common Stock at a price per share of $318 (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 March 2024 Warrants.
Notwithstanding the foregoing, the March 2024 Warrants shall vest, and not be subject to forfeiture, with respect to