Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 96

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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 at fair value under ASC 825. The Company determined
that the amendment to the conversion features present in the Second Amendment fall under the guidance within ASC 825 that notes that
if a significant modification of debt occurs an entity is able to make an accounting election on that date to account for that debt under
the fair value option. At the end of each reporting period, the Company calculates the fair value of the August 2024 Nirland Note, and
any changes in fair value are reported in the current period’s condensed consolidated statements of operations and comprehensive
loss.

    15

The
Company remeasured the fair value of the August 2024 Nirland Note as of the Second Amendment date and calculated a fair value of $4.5
million using a binomial lattice model. On December 9, 2024, and prior to obtaining shareholder approval, Nirland exercised their conversion
option and converted $0.1 million of principal for 1,533 shares of Common Stock pursuant to the rules and regulations of the Nasdaq.
As of December 31, 2024, $2.6 million of principal and accrued interest remained outstanding and the August 2024 Nirland Note had a fair
value of $2.8 million.

During
January and February 2025, Nirland exercised their conversion option and converted $1.8 million of principal in exchange for 60,080 shares
of Common Stock. In total the Company issued Common Stock with a fair value of $3.7 million based on the closing stock price on each
conversion date and recorded a loss on the change in fair value of $1.9 million, calculated as the difference between the fair value
of the shares issued and the portion of principal and interest settled. On February 12, 2025, the Company repaid the remaining unpaid
principal and interest of $0.9 million in cash and recorded a gain on extinguishment of $0.1 million, calculated as the difference between
the remaining fair value of August 2024 Nirland Note, less the amount of cash paid. As of June 30, 2025, no obligations remained under
the August 2024 Nirland Note.

For
the three and six months ended June 30, 2025, the Company recorded $24,000
 of interest expense, presented within Interest expense,
net, in the condensed consolidated statement of operations and comprehensive loss.

A.G.P.
Convertible Note

A.G.P was a financial