Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 38

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
---
. On June 27, 2025, the Company issued 95,618
shares of Common Stock valued at the closing price for the
previous day, $2.51.
The $0.2
million of compensation was recorded as a prepaid expense in
the condensed consolidated balance sheets. For the three and six months ended June 30, 2025, the Company recorded $3,000
 of general and administrative expense within the condensed
consolidated statements of operations and comprehensive loss related to the amortization of the prepaid.

Restricted
Stock

No
RSU’s or shares of restricted Common Stock were granted during the three or six months ended June 30, 2025. There were 50 shares
of restricted Common Stock vested as of June 30, 2025 and June 30, 2024.

Stock
Options

The
Company estimates the fair value of each option award on the date of grant using the Black-Scholes option-pricing model. The Company
then recognizes the grant date fair value of each option as compensation expense ratably using the straight-line attribution method over
the service period (generally the vesting period). The Black-Scholes model incorporates the following assumptions:

    ●
    Expected
    volatility – the Company estimates the volatility of the share price of their peer companies at the date of grant using a “look-back”
    period which coincides with the expected term, defined below. The Company believes using a “look-back” period which coincides
    with the expected term is the most appropriate measure for determining expected volatility.

    ●
    Expected
    term – the Company estimates the expected term using the “simplified” method outlined in SEC Staff Accounting Bulletin
    No. 107, “Share-Based Payment.”

    ●
    Risk-free
    interest rate – the Company estimates the risk- free interest rate using the U.S. Treasury Yield curve for periods equal to
    the expected term of the options in effect at the time of grant.

    ●
    Dividends
    – the Company uses an expected dividend yield of zero because the Company has not declared nor paid a cash dividend, nor are
    there any plans to declare a dividend.

The
Company did not grant stock options during the three and six months ended June 30, 2025 or June 30, 2024.

    22

The
Company accounts for forfeitures as they occur, which may result in the reversal of compensation