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

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
---
 all previously
accrued interest. As such, the Company removed accrued interest of $0.4 million and recorded other income of $0.4 million for the six
months ended June 30, 2025.

For the three and six months ended
June 30, 2025, the Company recorded $0.1 million and $0.2 million of interest expense related to the deferred commission payable balance
in the condensed consolidated statement of operations and comprehensive income loss, respectively.

On November 25, 2024,
the Company issued to A.G.P. the “A.G.P. Convertible Note in the principal amount of $5.7 million to evidence A.G.P.’s currently
owed Deferred Commission Payable, at which time the Deferred Commission Payable balance was removed. Unless earlier converted as specified
in the Convertible Note, the principal amount, plus all accrued but unpaid interest, is due on November 25, 2025 (the “Maturity
Date”). The convertible promissory note accrues interest at 5.5% per annum.

Per
the terms of the A.G.P. Convertible Note, conversion could not occur prior to the Company having sufficiently authorized shares of Common Stock to permit the entire conversion of the convertible promissory note. In addition, the conversion of the A.G.P. Convertible Note
could also not occur prior to receipt of stockholder approval to provide for such conversion, and
subsequent issuance of the Company’s Common Stock, pursuant to the stockholder approval rules under the rules and regulations of
The Nasdaq Stock Market. Further, A.G.P. will not be entitled to receive the Company’s Common Stock upon conversion, if such conversion
would result in A.G.P. owning greater than 9.99% of the Company’s then currently outstanding Common Stock. A.G.P. is also entitled
to resale registration rights as identified in the A.G.P. Convertible Note. As of January 25, 2025, the Company had sufficient authorized
shares of Common Stock to permit the entire conversion of the A.G.P. Convertible Note and the Company had also received shareholder
approval to allow for the entire conversion of the convertible promissory note.

    16

The
Company may prepay the A.G.P. Convertible Note in whole or in part. In the event of certain Events of Default (as defined in the
A.G.P. Convertible Note), all outstanding principal and accrued interest under