Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 770

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 770
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. The convertible
notes payable mature three years after issuance and bear 5%
interest, only to be paid in the event of a material breach by the Company. In the event of a Change of Control, the convertible notes
payable automatically convert into common shares of the Company at a conversion price equal to a 20%
discount to the price per share paid for the most senior class of shares in respect of such Change of Control. All of the convertible
notes payable converted into Common Stock upon the closing of the Merger at a 20%
discount as specified. Refer to Note 2 above for additional information.

At the time of the execution of the PIPE Subscription Agreement, Corvus
and its affiliates entered into a participation and inducement agreement with Nirland whereby Corvus agreed to provide certain payments
and economic benefits to Nirland. In certain circumstances, Nirland may have a right to cause Corvus to transfer 300,484 shares held to Nirland.

Related
Party Loan

The
loans made to a related party were stated at a total principal amount of $0.8 million, with no balance outstanding at December 31, 2024
and December 31, 2023, respectively. The loan carried no interest, and as such, no interest receivable was recorded. The Company recorded
a full reserve against the loan as the related party did not have the ability to repay the loans as of December 31, 2022. On September
22, 2023, the related party paid back a significant portion of its outstanding loan and the Company forgave the remaining portion of
the loan and the Company recorded the $0.3 million payoff as a gain within general and administrative expense on the consolidated statement
of operations and comprehensive income (loss), as it had previously been fully reserved.

Nirland

On
August 6, 2024, the Company entered into the August 2024 Nirland Note with Nirland, a related party of the Company. The Company
determined that Nirland was a related party due to Nirland’s ownership interest in the Company concurrently with the execution
of the August 2024 Nirland Note. Additionally, on October 28, 2024, the Company issued the October 2024 Nirland Note to Nirland, and
on October 31, 2024, the Company and Nirland amended the August 2024 Nirland Note, and on November 22, 2024, the