Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 628

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 628
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or a fixed amount of a debt instrument) and must be classified as a liability.

On
March 20, 2024, the Company issued in a private placement equity classified common stock purchase warrants (the “March 2024
Warrants”) to an investor to purchase up to an aggregate 2,600
shares of the Company’s Common Stock, in exchange for entering into a lock-up with respect to the shares of common stock held
by such holder (the “March Lock-Up Agreement”). The Company recognized at $0.5
million loss on the issuance of the warrants during the year ended December 31, 2024. The Company determined that the March 2024 Warrants
should be classified within equity and estimated the fair value of the warrants issued as of March 20, 2024, using a Black-Scholes
option-pricing model utilizing the following assumptions:

 Schedule
of Black-Scholes Option Pricing Model 

    March 20, 2024 
  
    Closing stock price 
    $347 
  
    Contractual exercise price 
    $318 
  
    Risk-free rate 
     4.41%
  
    Estimated volatility 
     78.5%
  
    Time period to expiration 
     3 Years 

    F-33

On
April 20, 2024, the Company issued in a private placement equity classified common stock purchase warrants (the “April 2024 Warrants”)
to shareholders’ of the Company to purchase up to an aggregate 14,477 shares of the Company’s Common Stock, in exchange for
(1) $12.50 per warrant and (2) entering into a lock-up with respect to the shares of common stock held by such holders (the “April
Lock-Up Agreement”). 9,077 of the total April 2024 Warrants issued were issued to directors, related parties and management of
the Company. The Company received cash of $0.2 million and recognized a $2.2 million loss on the issuance of the warrants during the year ended December 31, 2024. The Company determined that the April 2024 Warrants should be classified within equity and estimated the
fair value of the warrants issued as of April 20, 2024, using a Black-Scholes option-pricing model utilizing the following assumptions:

    April 20, 2024 
  
    Closing stock price 
    $308 
  
    Contractual exercise price 
    $