Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 122

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 122
---
ability and classification of assets or the amounts and classification of liabilities that may result from the
outcome of this uncertainty.

32

Cash
Requirements

Our
material cash requirements include the following contractual and other obligations.

A.G.P
Convertible Note

On November 25, 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 A.G.P.’s currently owed deferred commission payable. Unless earlier converted as specified in the A.G.P. Convertible
Note, the principal amount plus all accrued but unpaid interest is due on November 25, 2025 (the “Maturity Date”). The A.G.P.
Convertible Note accrues interest at 5.5% per annum.

At
any time prior to the full payment of the A.G.P. Convertible Note, provided that A.G.P. has given at least three business days written
notice to the Company, A.G.P., in its sole discretion, may elect to have all or any portion of the outstanding principal amount and all
interest accrued converted into shares of the Company’s common stock, at the lower of the 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. However, the conversion of the A.G.P. Convertible Note may not occur prior to
the Company having sufficiently authorized shares of common stock to permit the entire conversion of the convertible promissory note.
Refer to Note 4 to our financial statements included elsewhere in this Quarterly Report on Form 10-Q.

On
March 31, 2025, A.G.P exercised their conversion option and converted $0.4 million of principal and interest for 430,000 shares of common
stock. As of March 31, 2025, $5.5 million of principal and interest remained outstanding.

Working
Capital

We currently anticipate that
cash required for working capital for the next 12 months is approximately $12.7 million, which includes forecasted research and development
costs of $1.3 million, forecasted general and administrative costs of $7.2 million, and a convertible promissory note payable, if not
converted prior to maturity of $4.2 million. We do anticipate being able to fund required working