Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 120

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 the warrants
as of April 20, 2024, using a Black-Scholes option-pricing model utilizing the following assumptions:

    April 20, 2024 
  
    Closing stock price 
    $4,620 
  
    Contractual exercise price 
    $4,680 
  
    Risk-free rate 
     4.81%
  
    Estimated volatility 
     78.3%
  
    Time period to expiration 
     3 Years 

A
fair value of $2.4 million was calculated and recorded within additional paid-in capital on the condensed consolidated balance sheets.
The April 2024 Warrants are not exercisable until one year after their date of issuance. Each April 2024 Warrant is exercisable into
one share of the Company’s Common Stock at a price per share of $4,680 (as adjusted from time to time in accordance with the terms
thereof) for a two-year period after the date of exercisability. There is no established public trading market for the April 2024 Warrants.
Notwithstanding the foregoing, the April 2024 Warrants shall vest, and not be subject to forfeiture, with respect to 25% of such April
2024 Warrants commencing on the 90th day after the date of the April Lock-Up Agreement and 25% on each subsequent 90-day anniversary,
in each case vesting only if the holder agrees to continue to have its shares of Common Stock remain locked up pursuant to the April
Lock-Up Agreement on such date.

Liability
Classified Warrants

The
PIPE Warrants, A.G.P. Warrants, and the A.G.P 2024 Warrants (collectively the “Liability Classified Warrants”), are 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
as the warrants could be settled for an amount that is not equal to the difference between the fair value of a fixed number of the entity’s
shares and a fixed monetary amount. The Liability Classified Warrants are initially measured at fair value and are remeasured at fair
value at subsequent financial reporting period end dates and upon exercise (see Note 3 for additional information regarding fair value).

For
the three months ended June 30, 2025 and 2024, the Company remeasured the fair value of the Liability Classified Warrants and recorded
a gain on the change in the fair value