Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 81

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 three months or less and are reflected in the Condensed consolidated
balance sheets at carrying value, which approximates fair value due to their short-term nature.

The
following table presents additional information about the Convertible Notes Payable subject to measurement at fair value on a recurring
basis and warrant liabilities, for which the Company used significant unobservable inputs (Level 3) (in thousands):

 Schedule of Additional Information About the Financial Liabilities Subject To Measurement at Fair Value

    Convertible Notes Payable  
    Liability Classified Warrants 
  
    Balance as of December 31, 2024 
    $5,856  
    $138 
  
    Repayment of convertible note 
     (1,054) 
     - 
  
    Change in fair value 
     (2,139) 
     (131)
  
    Balance as of March 31, 2025 
    $2,663  
    $7 

    10

Convertible
Notes Payable

As discussed in Note 4, on
October 31, 2024, the Company and Nirland agreed to amend the Senior Secured Promissory Note entered into by the Company and Nirland on
August 6, 2024 (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. On February 12, 2025, the August 2024 Nirland Note was repaid in full.

Additionally, as discussed in Note 4, 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