Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 19

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 19
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 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. During the nine months ended September 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 nine months ended
September 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 609 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 $106.80. The $0.1 million was recorded as interest expense in the
condensed consolidated statement of operations and comprehensive income loss for the nine months ended September 30, 2025.

For
the three months ended September 30, 2025 and 2024, the Company incurred interest expense on the Convertible Promissory Note Payable
of nil and $40,000, respectively. For the nine months ended September 30, 2025 and 2024, the Company incurred interest expense on the
Convertible Promissory Note Payable of $0.1 million and $0.1 million, respectively.

    14

August
2024 Nirland Note

During
January and February 2025, Nirland exercised their conversion option and converted $1.8 million of principal in exchange for 7,510 shares
of Common Stock. In total