Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 862

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 862
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 Vela’s fair value per share and was $1.3 million. During the year ended December 31,
2021, the Company sold all 1.1 billion of its Vela shares for $1.2 million and recorded a loss of $0.1 million on the sale. The Company
received the $1.6 million (£1.25) million cash consideration during the year ended December 31, 2020. This consideration was recorded
as a liability related to the future sale of revenue on the balance sheet in accordance with ASC 470-10.

In
April 2023, the Company entered into an agreement with Vela which granted Vela the right, but not the obligation, to sell its 8% royalty
interest in AZD 1656 back to Conduit. Vela paid a one-time, non-refundable option fee to Conduit of $0.5 million (£0.4 million).
Total consideration payable to Vela upon exercise of the option was £4.0 million ($5.08 million on the exercise date) worth of
new common shares in the combined entity after the Merger between Conduit Pharmaceuticals Limited and MURF, following the consummation
of the Merger, at a price per share equal to the volume-weighted average price per share over the ten (10) business days prior to the
date of the notice of exercise. The option contained a provision stating that in no event would the price per share for the consideration
shares be lower than $5 or higher than $15. The option was exercisable in whole at any time from the close of the Merger (the “Effective
Time”) until the earlier of (i) the date that was six (6) months from the Effective Time, and (ii) February 7, 2024, the expiration
date of the term.

On
November 30, 2023, Vela exercised its option to sell back its indirect investment in AZD 1656 in exchange for 10,157 shares of the Common
Stock. The Company recognized the $2.8 million of deferred revenue and recorded $2.8 million to other income (expense), net, on the consolidated
statement of operations and comprehensive income (loss) for the year ended December 31, 2023. As of December 31, 2023, there was no liability
for the sale of future revenue related to Vela.

    F-18

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