Company: CDT
Filing Date: 2025-07-08
Form Type: DEF 14A
Source: 0001641172-25-018242
Chunk: 54

Company: CDT Equity Inc.
Filing Date: 2025-07-08
Form: DEF 14A
Chunk 54
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), represent a total of 2,014,741 shares available for issuance which currently represents an overhang in of more than 25% on a fully-diluted basis regarding the Amended 2023 Plan; however, as of any date of grant, the total number of shares granted as awards under the Amended 2023 Plan cannot exceed, in the aggregate, more than 25% of our then total outstanding shares as of such grant date. By way of example, based on our current number of outstanding shares, despite making available an additional 2,000,000 shares available under the Amended 2023 Plan, awards could not be granted under the Amended 2023 Plan greater than 601,285 shares (25% x 2,405,140 shares), and if such grant was made in such an amount, then any future grant calculations regarding the 25% limitation would take into account such prior grants.

Based on the closing price on The Nasdaq Stock Market LLC for our common stock on July 3, 2025 of $2.92 per share, the aggregate market value as of July 3, 2025 of the additional 2,000,000 shares of common stock requested under the Amended 2023 Plan was $5,840,000; provided that as of any grant date, the total number of shares granted as awards under the Amended 2023 Plan cannot exceed 25% of our then total outstanding shares as of such grant date (and based on current outstanding shares, the total shares available for grant under the Amended 2023 Plan would be 601,285, with a total value of $1,755,752)

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In fiscal years 2023 and 2024, we granted stock options, restricted stock units and fully vested shares under the 2023 Plan covering 764 shares and 3,880 shares, respectively. Based on our basic weighted average common stock outstanding for those two fiscal years of 44,649 on December 31, 2023 and 57,806 on December 31, 2024, our average burn rate for those years, not taking into account forfeitures, was 4.5% (our individual years’ burn rates were 1.7% for fiscal 2023 and 6.7% for fiscal 2024).

In determining the number of shares to request for approval under the Amended 2023 Plan, our Compensation Committee considered a number of factors