Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 858

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 858
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 Nirland Note and A.G.P. Convertible Note (collectively the “Convertible Notes Payable”) at fair value. The fair
value of the Convertible Notes Payable is estimated each period using a binomial lattice model. Significant estimates in the
binomial lattice model include the Company’s stock price, volatility, risk-free rate, corporate bond yield, credit
spread, probability of default, and recovery upon default.

The
fair value of the August 2024 Nirland Note and A.G.P. Convertible Note as of December 31, 2024 were estimated using a binomial
lattice model. 

The following
table outlines the range of significant unobservable inputs used in calculating the fair value of the August 2024 Nirland Note as of
the dates noted below:

Schedule
of Fair Value  of Assumptions

    October 31,

2024

    November 22,

2024

    December 31,
                                                                                2024 
  
    Stock Price
     
    $
    9.10

    $
    10.40
      
    $6.90 
  
    Term (years)

    0.8

    0.7
      
     0.6 
  
    Corporate bond yield

    9.1
    %

    8.7
    % 
     11.4%
  
    Credit Spread

    15.9
    %

    15.9
    % 
     15.9%

    Probability of default 
     40% 
     40% 
     40%

    Recovery upon default 
     20% 
     20% 
     20%

    Volatility

    103.2
    %

    96.5
    % 
     123.7%

The
following table outlines the range of significant unobservable inputs used in calculating the fair value of the A.G.P. Convertible
Note as of the dates noted below:

Schedule
of Fair Value  of Assumptions

    November 25,
                                               2024
      
    December 31,
                                                                                2024 
  
    Stock Price
     
    $
    9.10
      
    $6.90 
  
    Term (years)

    1
      
     0.9 
  
    Corporate bond yield

    8.8
    % 
     9.