Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 32

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 32
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the right to distribute, market, promote or sell the products or services that are related to or incorporate the CDT Assets.

Effective
June 3, 2025, in exchange for the approximate $0.5 million of consideration to be paid by CDT under the Joint Development Agreement,
CDT issued to Manoira 19,349 shares of its Common Stock, (the “Consideration Shares”) valued at the closing price of the
Common Stock immediately preceding execution of the Joint Development Agreement. The Company recorded the shares issued under the Joint
Development Agreement at their fair value, as determined by the closing price of the Company’s Common Stock on June 2, 2025, $31.52,
and adjusted for a 20% discount for lack of marketability, as determined by a third-party valuation expert. The Company recorded the
fair value of $0.4 million as prepaid within the condensed consolidated balance sheets. During the three and nine months ended September
30, 2025, the Company recorded $0.1 million amortization expense for research and development activities provided to date.

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8.
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 958 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 577 and 307 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