Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 868

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 868
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 August 2024 Nirland Note. The Company
accounted for the First Amendment as a debt extinguishment, as the First Amendment added a substantive conversion option. As of October
31, 2024, a loss on debt extinguishment of $2.2 million was recorded consisting of (i) the derecognition of the $1.3 million carrying
value immediately prior to the First Amendment (ii) recognition of the $2.7 million par value and (iii) recognition of the $0.8 million
substantial premium.

On
November 22, 2024, the Company and Nirland entered into a Second Amendment to the August 2024 Nirland Note (the “Second
Amendment”). Pursuant to the Second Amendment, the Nirland Note may not be converted (other than partial conversions that may
be permitted pursuant to the rules and regulations of NASDAQ (or any successor entity)) prior to receipt of stockholder approval to
provide for such conversion of the Nirland Note, and subsequent issuance of the Company’s Common Stock, pursuant to the
stockholder approval rules under the rules and regulations of The Nasdaq Stock Market. If the Company has not held a special meeting
of the stockholders to approve the full conversion of the August 2024 Nirland Note on or before January 9, 2025, then the Company
shall be obligated to pay Nirland a penalty of $0.1
million per day until the special meeting is held. In addition, the existing conversion rate was amended to be two and one half
times the sum of (x) the portion of the principal to be converted, redeemed or otherwise with respect to which this determination is
being made and (y) all accrued and unpaid interest (including default interest) with respect to such portion of the principal
amount, if any divided by $0.10, prior to the Reverse Stock Split, (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 to maintain the
economic equivalence of the conversion rights as at the amendment effective date. The Company notes that the reverse split provision
in the preceding sentence was tripped, effective January 25, 2025, following the 1-for-