Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q/A
Source: 0001641172-25-024123
Chunk: 24

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q/A
Chunk 24
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. In exchange for negotiating the Settlement Agreement, the Company agreed to pay $ 0.1million through the issuance of shares of Common Stock or cash. On March 31, 2025, the Company issued 73,074shares of Common Stock. The number of shares issued was determined based on the agreement amount of $ 0.1million, divided by the closing share price on March 28, 2025 (prior trading date) of $ 0.89. The $ 0.1million was recorded as interest expense in the condensed consolidated statement of operations and comprehensive income loss for the three months ended March 31, 2025.

For the three months ended March 31, 2025, and March 31, 2024, the Company incurred interest expense on the Convertible Promissory Note Payable of $ 0and $ 40,000, respectively.

August 2024 Nirland Note

On August 6, 2024, the Company
entered into August 2024 Nirland Note with 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 12 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