Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 313

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 313
---
 payable on December 31, 2024.

As
noted above, the Company issued to A.G.P. warrants to purchase up to 28,625
shares of the Company’s common stock. The Company determined that the Bridge Note and Warrant Agreement issuance were part of
a basket transaction and allocated the net proceeds using the residual value method. The warrants issued under the Warrant Agreement
were initially recorded at their fair value of $0.2
million. The warrants were classified as derivative liabilities because they do not meet the criteria in ASC 815-40 to be considered
indexed to the entity’s own stock. Refer to Note 18 for additional information and discussion of liability classification. The $0.2 million
recorded for the warrants was considered to be a discount on the A.G.P. Bridge Note making the balance of the note to be $0.6 million
note payable, less a total debt discount of $0.2 million.
The debt discount will be amortized to interest expense using the effective interest method over the life of the note.

During
the year ended December 31, 2024, the Company recorded and paid approximately $1 thousand of interest expense related to the A.G.P. Additionally,
the entire debt discount of $0.2 million was amortized and recorded as interest expense during the year. The interest expense of $1 thousand
and amortization of the debt discount of $0.2 million were recorded within Interest expense, net in the consolidated statement of operations
and comprehensive income (loss). As of December 31, 2024, the A.G.P. Bridge note was fully repaid.

    F-24

9.
Deferred Commission Payable

As
discussed in Note 2, A.G.P was a financial advisor to both MURF and Old Conduit in connection with the Merger transaction. Upon the completion
of the Merger, A.G.P.: (i) received a cash fee of $6.5 million, 13,000 shares of Common Stock, and warrants to purchase 540 shares of
Common Stock at an exercise price of $1,100 per share pursuant to its engagement agreement with Old Conduit entered into on August 2,
2022, and (ii) agreed to defer payment, to be paid in the future under certain circumstances by a date no later than March 21, 2025,
of $5.7 million of fees plus annual interest of 5.5%