Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 895

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 895
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offering (the “Publicly Traded Warrants”), and (ii) the warrants that were included in the private placement units issued
to the Sponsor simultaneously with the closing of MURF’s initial public offering (the “Private Placement Warrants”).
In connection with the Merger, the Company also issued warrants to the PIPE Investors (the “PIPE Warrants”) pursuant to the
Subscription Agreements and to an advisor (the “A.G.P. Warrants,” and together with the PIPE Warrants, the “Liability
Classified Warrants”) pursuant to the Company’s engagement agreement with the advisor.

The
Company determined that the settlement amount of the Publicly Traded Warrants and the Private Placement Warrants would equal the difference
between the fair value of a fixed number of shares and a fixed monetary amount (or a fixed amount of a debt instrument) and must be classified
as equity, while the settlement amount of the Liability Classified Warrants would not equal the difference between the fair value of
a fixed number of shares and a fixed monetary amount (or a fixed amount of a debt instrument) and must be classified as a liability.

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 year ended December 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 

    F-33

On
April 20, 2024, the Company issued in a private placement equity classified common stock purchase warrants (the “April