Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 1277

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 16
Chunk 1277
---
 the terms of the August 2024 Nirland Note were
deemed to be substantially different after the Second Amendment. As of November 22, 2024, a loss on debt extinguishment of $0.9 million
was recorded consisting of (i) the derecognition of the 2.7 million carrying value immediately prior to the First Amendment (ii) derecognition
of $0.1 million in accrued interest (iii) derecognition of the $0.8 million substantial premium and (iv) recognition of the $4.4 million
fair value.

On
December 9, 2024, and prior to obtaining shareholder approval, Nirland exercised their conversion option and converted $0.1 million of
principal for 23,000 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 remains outstanding. As of December 31, 2024, the August 2024 Nirland Note had a fair value of approximately $2.8 million and is included
within Convertible promissory notes payable at fair value –
related parties on the consolidated balance sheets. 

For
the year ended December 31, 2024, the Company recorded a $1.5 million
gain from the change in fair value of convertible promissory note and interest expense of approximately $0.4
million. The interest expense of $0.4 million is comprised of (i) accrued interest of $0.2 million and (ii) $0.2 million in
amortization expense related to the initial debt discount of $1.5 million. The $2.2
million loss on debt extinguishment from the Frist Amendment, $0.9
million loss on debt extinguishment from the Second Amendment, and the $1.5
million gain on the change in fair value are presented within other income (expense), net, while the $0.4
million of interest expense is presented within Interest expense, net, in the consolidated statement of operations and comprehensive
income (loss).

A.G.P.
Convertible Note

On
November 25, 2024, the Company issued to A.G.P. a convertible promissory note (the “A.G.P. Convertible Note”) in the principal
amount of $5.7 million to evidence the A.G.P.’s currently owed deferred commission payable. Refer to