Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 870

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 870
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 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 the Note 9 for additional
information. Unless earlier converted as specified in the Convertible Note, the principal amount, plus all accrued but unpaid interest,
is due on November 25, 2025 (the “Maturity Date”). The convertible promissory note accrues interest at 5.5% per annum.

    F-21

At
any time prior to the full payment of the convertible promissory note, provided that the A.G.P. has given at least three business
days written notice to the Company, A.G.P., in its sole discretion, may elect to have all or any portion of the outstanding
principal amount and all interest accrued converted into shares of the Company’s common stock, at a fixed price of $10.00
(or following any reverse splits that may occur in a ratio greater than 10 to 1, the lower of such reverse split price and the
market price per share at the time of the conversion date, but in no event less than $1.00),
subject to adjustment as provided therein and to take into account any future share splits or reverse splits. The
Company notes that the reverse split provision in the preceding sentence was tripped, effective January 25, 2025, following the 1-for-100 reverse stock split
that occurred on that date. However, the conversion of the convertible promissory note may