Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 35

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 for an 7%
discount for lack of marketability, as determined by a third-party valuation expert. The Company recorded the fair value of $1.5
million as a prepaid within the condensed consolidated balance sheets, as no services had been provided as of March 31,
2025.

    19

Consulting
Agreement

Effective
March 25, 2025, the Company entered into a Consulting Agreement (the “Consulting Agreement”) with Thesprogen PC (“Thesprogen”),
an expert in advising clients on strategies for pharmaceutical and biotech development. Total fees under the Consulting Agreement total
to $0.3 million and was settled through the issuance of 337,079 fully vested unregistered shares of Common Stock on March 31, 2025. The
Company recorded the shares issued under the Consulting Agreement at their fair value, as determined by the closing price of the Company’s
Common Stock on March 30, 2025, $0.89, and adjusted for a 7% discount for lack of marketability, as determined by a third-party valuation
expert. The Company recorded the fair value of $0.3 million as a prepaid within the condensed consolidated balance sheets, as no services
had been provided as of March 31, 2025.

8.
Share Based Compensation

On
September 22, 2023, in connection with the Merger, the Company adopted the Conduit Pharmaceuticals Inc. 2023 Stock Incentive Plan (the
“2023 Plan”). The 2023 Plan became effective upon the closing of the Merger. The 2023 Plan initially provided for the issuance
of up to 114,976 shares of Common Stock. Pursuant to the 2023 Plan’s “evergreen” provision, on February 6,
2025 and January 10, 2024, the Company increased the number of shares of Common Stock available for issuance under the 2023 Plan by 69,240
and 36,914 shares, respectively. The number of authorized shares will automatically increase on January 1, 2026 and continuing annually
on each anniversary thereof through (and including) January 1, 2033, equal to the lesser of (i) 5% of the shares of common stock
outstanding on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares of common stock as determined
by the Board or the applicable committee of the Board