Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 21

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 expense in the condensed consolidated
statement of operations and comprehensive income loss for the six months ended June 30, 2025.

For
the three months ended June 30, 2025 and 2024, the Company incurred interest expense on the Convertible Promissory Note Payable of zero
and $40,000, respectively. For the six months ended June 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

On
August 6, 2024, the Company entered into August 2024 Nirland Note with Nirland Limited (“Nirland”), a related party of the Company, pursuant to which
the Company issued and sold to Nirland the August 2024 Note in the original principal amount of $2.7
million, inclusive of a $0.5
million original issuance discount. See Note 10 for further reference to the relationship between the Company and Nirland. Of the
total amount of the August 2024 Nirland Note, $1.7
million was issued upon execution of the August 2024 Nirland Note. The balance of $0.5
million was provided to the Company when the shares were registered for resale in September 2024. In the event the Company completes
any public or private equity or debt financing, the Company shall be required to mandatorily prepay (“Mandatory Prepayment
Right”), any amounts that may be then outstanding under the August 2024 Nirland Note, within two business days following the
closing of such financing, in an amount of no less than 75%
of the net proceeds received. Per the terms of the August 2024 Nirland Note, the Company was prohibited from entering into a
variable rate transaction without prior written consent from Nirland. The August 2024 Nirland Note bore interest at a rate of 12%
per annum, accruing daily on a 365-day basis, payable monthly in arrears as cash, or accrued at Nirland’s discretion. The
August 2024 Nirland Note was scheduled to mature 12 months from August 6, 2024.

On
October 31, 2024, the Company and Nirland amended the August 2024 Nirland Note (the “First Amendment”), whereby the August
2024 Nir