Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 879

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 879
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intellectual property rights, including proprietary tools and methodologies used in the performance of the services. Conduit will
own all deliverables resulting from the services performed by Sarborg under the Sarborg Service Agreement.

The Sarborg Service Agreement provides Sarborg with registration rights
for any Common Stock of Conduit that Sarborg receives as consideration under the Sarborg Service Agreement. In such event, Conduit will
use commercially reasonable efforts to (i) file a registration statement covering the resale of the Common Stock within 60 days after
the issuance; and (ii) ensure that such registration statement becomes effective within 90 days after filing. This Agreement also includes
confidentiality obligations, representations and warranties, indemnification, limitation of liability, and insurance requirements.

In
consideration of the services, Conduit agreed to pay Sarborg an initial cash payment of $0.2
million and $0.2
million payable through the issuance of 22,727
shares of common stock, determined by the closing price on the day preceding the execution of the Sarborg Service Agreement.
Further milestone payments payable in conjunction with the achievement of certain milestones over the term of the Sarborg Service
Agreement, totaling up to $1.8
million, are payable in cash or shares, at the discretion of Conduit. Sarborg will be reimbursed for pre-approved, necessary, and
reasonable out-of-pocket expenses directly incurred in connection with the performance of the services.

Management
determined that the cost incurred under the Sarborg Service Agreement should be recorded to research and development expense in the
statement of operations and comprehensive income (loss), as the Sarborg Service Agreement is designed to provide the
Company with software/dashboard to aid in research and development activities. The initial cash payment of $0.2
million and issuance of 22,727
shares of Common Stock were recorded to prepaid expense and will be amortized over the initial term of the Sarborg Service Agreement to research and
development expense. As of December 31, 2024, the 22,727
shares of common stock were yet to be issued and are recorded within accrued expense and other current liabilities in the
consolidated balance sheets. As of December 31, 2024, the Company has recognized $0.2
million of amortization within research and development expense in the consolidated statement of operations and comprehensive income
(loss).

11.
Share Based Compensation

On
September 22, 2023, in connection with the Mer