Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 651

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 651
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 regulations of NASDAQ (or any successor entity)) prior to receipt of stockholder approval to
provide for such conversion of the Nirland Note, and subsequent issuance of the Company’s Common Stock, pursuant to the
stockholder approval rules under the rules and regulations of The Nasdaq Stock Market. If the Company has not held a special meeting
of the stockholders to approve the full conversion of the August 2024 Nirland Note on or before January 9, 2025, then the Company
shall be obligated to pay Nirland a penalty of $100,000 per day until the special meeting is held. The special meeting was held on
January 9, 2025, in which stockholder approval was obtained. In addition, the existing conversion rate was amended to be two and one
half times the sum of (x) the portion of the principal to be converted, redeemed or otherwise with respect to which this
determination is being made and (y) all accrued and unpaid interest (including default interest) with respect to such portion of the
principal amount, if any divided by $0.10, pre-split in January 2025 (or following any reverse splits that may occur in a ratio greater than 10 to 1, the lower
of such reverse split price and the market price per share at the time of the conversion date, but in no event less than $1.00),
subject to adjustment as provided therein and to take into account any future share splits or reverse splits. On January 24, 2025, the Reverse Stock Split became effective, resulting in every 100 shares of our common stock
issued or outstanding becoming one new share of our common stock, resulting in the conversion price increasing to $6.86 as of December
31, 2024.

On December 9, 2024, Nirland
exercised their conversion option and converted $0.1 million of principal for 23,000 shares of common stock pursuant to the rules and
regulations of the NASDAQ. As of December 31, 2024, $2.6 million of principal and accrued interest remains outstanding.

October
2024 Nirland Note

On
October 28, 2024, the Company issued a promissory note (the “October 2024 Nirland Note”) to Nirland in the original
principal amount of $0.6 million in exchange for funds in such amount. The October 2024 Nirland Note bears interest at a rate