Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 450

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 450
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 the note until the maturity date.

On
October 9, 2024, the Company and the loan holder signed an extension to extend the maturity date from September 20, 2024 to October
20, 2024 with the option for the Company to further extend the maturity date two times, each by an additional 30-day period. The
Company exercised both options to extend the maturity date to December 19, 2024 which included interest previously payable as well as the principal. As consideration for extending the maturity date,
the Company amended the form of repayment of the remaining interest due on the loan. As payment for the interest, the Company issued
the loan holder, (i) $80,000 worth
of Common Stock to be issued at the closing market price on the date prior to issuance and (ii) 20,000 shares
of Common Stock. On October 11, 2024, the Company issued the loan holder 27,812 shares
of Common Stock in satisfaction of the obligations in (i) and (ii) in the preceding sentence.

The
extension met the criteria for as a debt extinguishment under ASC 470-50. As of October 9, 2024, the Company recorded a gain on debt extinguishment
of $0.1
million, calculated as the difference between (i) the $0.8 million
carrying value of the Convertible Promissory Note Payable immediately prior to the amendment (ii) the $0.4
million fair value of the Convertible Promissory Note Payable immediately after the amendment and (iii) the $0.3
million fair value of the shares issued to the holder as consideration for extending the maturity date. The difference between the
$0.8 million
carrying value immediately prior to the amendment and the $0.4
million fair value immediately after the amendment was recorded as a debt discount and amortized over the amended maturity date of
the Convertible Promissory Note using the effective interest method.

In
connection with the extension of the loan, the Company entered into a consulting agreement with an unrelated third party to negotiate
the extension of the of the convertible note with the loan holder on behalf of the Company. The Company issued the third-party 8,500 shares
on October 11, 2024, in exchange for services provided. The fair value of the shares were $0.1 million, as determined
by multiplying the closing share