Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 20

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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,140  
    $1,963 

4.
Convertible Notes Payable

Convertible
Promissory Note Payable

During
March 2023, the Company issued a convertible promissory note payable (the “Convertible Promissory Note Payable”) with an
aggregate principal amount of $0.8 million
to a non-related third party. The
Convertible Promissory Note Payable had a maturity date of 18 months from the date of issuance and carries interest at a rate of 20% annually, which is payable every six (6) months from the date of the note until the maturity date.

On
March 6, 2025, the Company reached a Settlement Agreement (the “Settlement Agreement”) with the loan holder to pay
$0.7
million in order to settle the Convertible Promissory Note Payable in full. The Company repaid the loan holder the settlement amount
of $0.7
million on March 13, 2025. The Settlement Agreement and subsequent repayment was treated as a debt extinguishment under ASC
470-50. During the three and six months ended June 30, 2025, the Company recorded a gain on debt extinguishment of $0.1
million, calculated as the difference between (i) the $0.8
million carrying value of the Convertible Promissory Note Payable immediately prior to the amendment, and (ii) the $0.7
million repayment of the Convertible Promissory Note Payable. The $0.1
million gain on debt extinguishment was recorded within other income (expense) in the condensed consolidated statement of operations
and comprehensive loss for the six months ended June 30, 2025.

In
connection with the Settlement Agreement, the Company entered into a consulting agreement with a third party to negotiate the settlement
of the Convertible Promissory Note Payable with the loan holder on behalf of the Company. In exchange for negotiating the Settlement Agreement, the Company
agreed to pay $0.1 million through the issuance of shares of Common Stock or cash. On March 31, 2025, the Company issued 4,872 shares
of Common Stock. The number of shares issued was determined based on the agreement amount of $0.1 million, divided by the closing share
price on March 28, 2025 (prior trading date) of $13.35. The $0.1 million was recorded as interest