Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 743

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 743
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 party to negotiate
the extension of the of the convertible note with the loan holder on behalf of the Company. The Company issued the third-party 8,500 shares
on October 11, 2024, in exchange for services provided. The fair value of the shares were $0.1 million, as determined
by multiplying the closing share price on October 10, 2024 (day prior to issuance) of $10.24 by the total number of shares issued, 8,500.
This amount was capitalized as a debt issuance cost and accreted over the amended term of the Convertible Promissory Notes Payable
using the effective interest method.

For
the year ended December 31, 2024, and December 31, 2023, the Company incurred interest expense on the Convertible Promissory Note
Payable of $0.5
million and $0.1
million, respectively. The promissory note payable remained outstanding as of December 31, 2024, therefore the Company was
considered to be in default. On March 6, 2025, the Company reached an agreement with the loan holder to pay $0.7
million in order to settle the March 2023 Convertible Note in full. The Company repaid the loan holder the settlement amount $0.7
million on March 13, 2025. See Note 20 for additional details.

August
2024 Nirland Note

On
August 6, 2024, the Company entered into a Senior Secured Promissory Note (the “August 2024 Nirland Note”) with Nirland,
a related party of the Company, pursuant to which the Company issued and sold to Nirland the August 2024 Note in the original principal
amount of $2.7 million, inclusive of a $0.5 million original issuance discount. See Note 16 for further reference to the relationship
between the Company and Nirland. Of the total amount of the August 2024 Nirland Note, $1.7 million was issued upon execution of
the August 2024 Nirland Note. In connection with the August 2024 Nirland Note, the Company issued to Nirland 125,000 shares
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 202