Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 48

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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, and not be subject to forfeiture, with respect to 25% of such April
2024 Warrants commencing on the 90th day after the date of the April Lock-Up Agreement and 25% on each subsequent 90-day anniversary,
in each case vesting only if the holder agrees to continue to have its shares of Common Stock remain locked up pursuant to the April
Lock-Up Agreement on such date.

Liability
Classified Warrants

The
PIPE Warrants, A.G.P. Warrants, and the A.G.P 2024 Warrants (collectively the “Liability Classified Warrants”), are classified
as derivative liabilities because they do not meet the criteria in ASC 815-40 to be considered indexed to the entity’s own stock
as the warrants could be settled for an amount that is not equal to the difference between the fair value of a fixed number of the entity’s
shares and a fixed monetary amount. The Liability Classified Warrants are initially measured at fair value and are remeasured at fair
value at subsequent financial reporting period end dates and upon exercise (see Note 3 for additional information regarding fair value).

For
the three months ended June 30, 2025 and 2024, the Company remeasured the fair value of the Liability Classified Warrants and recorded
a gain on the change in the fair value of $6,000 and $0.1 million, respectively. For the six months ended June 30, 2025 and 2024,
the Company remeasured the fair value of the Liability Classified Warrants and recorded a gain on the change in the fair value of $0.1
million in each period. The gains were recorded to other income (expense), net, on the condensed consolidated statements of operations
and comprehensive loss. As of June 30, 2025 and December 31, 2024, the condensed consolidated balance sheets contained warrant liabilities
of $1,000 and $0.1 million, respectively.

PIPE
Warrants and A.G.P. Warrants 

Upon
closing of the Merger, 1,333 PIPE Warrants were issued to the PIPE Investors pursuant to subscription agreements. The warrants provide
the PIPE Investors the right to purchase up to 1,333 shares of Common Stock at an exercise price of $17,250. Additionally, on the Closing
Date of the Merger, the Company issued 36 A.G.P. Warrants to an advisor for services provided directly related to