Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 97

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 97
---
 advisor
to both MURF and Old Conduit in connection with the Merger transaction. Upon the completion of the Merger, A.G.P.: (i) received a cash
fee of $6.5 million, 867 shares of Common Stock, and warrants to purchase 36 shares of Common Stock at an exercise price of $16,500 per
share pursuant to its engagement agreement with Old Conduit entered into on August 2, 2022, and (ii) agreed to defer payment, to be paid
in the future under certain circumstances by a date no later than March 21, 2025, of $5.7 million of fees plus annual interest of 5.5%
(the “Deferred Commission Payable”) as a result of its engagement for MURF’s IPO. Accrued interest was recorded as a
liability on the Company’s consolidated balance sheet under accrued expenses and other current liabilities and totaled $0.4 million
as of December 31, 2024. During the six months ended June 30, 2025, the Company reached an agreement with A.G.P. to waive 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