Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 989

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9C
Chunk 989
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of the Company’s Common Stock on August 6, 2024. The balance of $0.5 million became payable to the Company when the shares
were registered for resale in September 2024. In the event the Company completes any public or private equity or debt financing, the
Company shall be required to mandatorily prepay (“Mandatory Prepayment Right”), any amounts that may be then outstanding
under the August 2024 Nirland Note, within two business days following the closing of such financing, in an amount of no less than 75%
of the net proceeds received. Per the terms of the August 2024 Nirland Note, the Company is prohibited from entering into a variable
rate transaction without prior written consent from Nirland. The August 2024 Nirland Note bears interest at a rate of 12% per annum,
accruing daily on a 365-day basis, payable monthly in arrears as cash, or accrued at Nirland’s discretion. The August 2024
Nirland Note matures 12 months from August 6, 2024.

As noted above, the Company issued to Nirland 125,000 shares
of the Company’s Common Stock on August 6, 2024. The Company determined that loan agreement and share issuance should were part
of a basket transaction and allocated the net proceeds on a relative fair value basis. Of the total $2.2 net proceeds, $1.2 million
was allocated to the August 2024 Nirland Note including $1.5 million gross proceeds, less $0.3 million Original Issue Discount
(“OID”). The remaining $1.0 million was allocated to the common stock, including $1.2 million gross proceeds less
$0.2 OID. The $1.2 million allocated to the common stock was considered to be a discount on the August 2024 Nirland Note making
the balance of the note to be $2.7 million note payable, less a total debt discount of $1.5 million. The debt discount will
be amortized to interest expense using the effective interest method over the life of the note.

On
October 31, 2024, the Company and Nirland amended the August 2024 Nirland Note (the “First Amendment”), whereby the August
2024 Nirland Note was amended to (i) provides for the conversion of the August 202