Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 46

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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one warrant (the “Private Placement Warrant”). Each Private Placement Warrant was exercisable to purchase one share of MURF
Class A common stock at a price of $17,250 per share, subject to adjustment. The private placement units (including the Class A common
stock issuable upon exercise of the warrants included in the private placement units) were not transferable, assignable, or saleable
until 30 days after the completion of a Merger, subject to certain exceptions.

Upon
the closing of the Merger, the Company assumed the Publicly Traded Warrants and Private Placement Warrant. The Publicly Traded Warrant
and Private Placement Warrant were amended to entitle each holder to purchase one share of the Company’s Common Stock.

March
2024 Warrants

On
March 20, 2024, the Company issued in a private placement equity classified Common Stock purchase warrants (the “March 2024
Warrants”) to an investor to purchase up to an aggregate 173 shares
of the Company’s Common Stock, in exchange for entering into a lock-up with respect to the shares of Common Stock held by such
holder (the “March Lock-Up Agreement”). The Company recognized at $0.5 million
loss on the issuance of the warrants during the six months ended June 30, 2024. The Company determined that the March 2024 Warrants
should be classified within equity and estimated the fair value of the warrants issued as of March 20, 2024, using a Black-Scholes
option-pricing model utilizing the following assumptions:

 Schedule
of Black-Scholes Option Pricing Model 

    March 20, 2024 
  
    Closing stock price 
    $5,205 
  
    Contractual exercise price 
    $4,770 
  
    Risk-free rate 
     4.41%
  
    Estimated volatility 
     78.5%
  
    Time period to expiration 
     3 Years 

A
fair value of $0.5 million was calculated and recorded within additional paid-in capital on the condensed consolidated balance sheets.
The March 2024 Warrants are not exercisable until one year after their date of issuance. Each March 2024 Warrant is exercisable into
one share of the Company’s Common Stock at a price per share of $4,770 (as adjusted from time to time in accordance with the terms
thereof) for a two-year period after the date