Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 109

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 taken place.

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7.
Share Based Compensation

On
September 22, 2023, in connection with the Merger, the Company adopted the CDT Equity Inc. 2023 Stock Incentive Plan (the
“2023 Plan”). The 2023 Plan became effective upon the closing of the Merger. The 2023 Plan initially provided for the issuance
of up to 7,665 shares of Common Stock. Pursuant to the 2023 Plan’s “evergreen” provision, on February 6, 2025 and January
10, 2024, the Company increased the number of shares of Common Stock available for issuance under the 2023 Plan by 4,616 and 2,461 shares,
respectively. The number of authorized shares will automatically increase on January 1, 2026 and continuing annually on each anniversary
thereof through (and including) January 1, 2033, equal to the lesser of (i) 5% of the shares of Common Stock outstanding on the last
day of the immediately preceding fiscal year and (ii) such smaller number of shares of Common Stock as determined by the Board or the
applicable committee of the Board. The 2023 Plan allows for awards to be issued to employees and non-employee directors in the form of
options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance stock units, dividend
equivalents, other stock-based, or other cash-based awards. As of June 30, 2025, there were 10,712 shares of Common Stock available for
issuance under the 2023 Plan.

Board
of Directors Shares

On
March 30, 2025, certain non-employee directors elected to receive their unpaid cash retainers due through the period ended June 30,
2025, under the Director Compensation Program, in the form of fully vested shares of Common Stock. In total, $0.1 million of
unpaid retainers was settled through the issuance 10,350 unregistered shares of Common Stock (the “Retainer
Shares”). The Company recorded the Retainer Shares at their fair value, as determined by intraday share prices of the
Company’s Common Stock on March 31, 2025. In relation to the Retainer Shares, the Company recorded $58,000 and $0.1 million of expense within general & administration expense in the condensed consolidated statement of operations and