Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 36

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 AZD5658
(the “CDT Assets”). Manoira will evaluate the CDT Assets’ applicability in animal health, explore veterinary
market opportunities, and provide data from the evaluations to inform CDT’s human clinical programs. The license does not grant
Manoira the right to distribute, market, promote or sell the products or services that are related to or incorporate the CDT Assets.

Effective
June 3, 2025, in exchange for the approximate $0.5 million of consideration to be paid by CDT under the Joint Development Agreement,
CDT issued to Manoira 154,799 shares of its Common Stock, (the “Consideration Shares”) valued at the closing price of
the Common Stock immediately preceding execution of the Joint Development Agreement. The Company recorded the shares issued under the
Joint Development Agreement at their fair value, as determined by the closing price of the Company’s Common Stock on June 2, 2025,
$3.94, and adjusted for a 20% discount for lack of marketability, as determined by a third-party valuation expert. The Company recorded
the fair value of $0.4 million as a prepaid within the condensed consolidated balance sheets. During the three and six months ended June
30, 2025, the Company did not record amortization expense, as no research and development activities had taken place.

    21

7.
Share Based Compensation

On
September 22, 2023, in connection with the Merger, the Company adopted the CDT Equity Inc. 2023 Stock Incentive Plan (the
“2023 Plan”). The 2023 Plan became effective upon the closing of the Merger. The 2023 Plan initially provided for the issuance
of up to 7,665 shares of Common Stock. Pursuant to the 2023 Plan’s “evergreen” provision, on February 6, 2025 and January
10, 2024, the Company increased the number of shares of Common Stock available for issuance under the 2023 Plan by 4,616 and 2,461 shares,
respectively. The number of authorized shares will automatically increase on January 1, 2026 and continuing annually on each anniversary
thereof through (and including) January 1, 2033, equal to the lesser of (i) 5% of the shares of Common Stock outstanding on the last
day of the immediately preceding fiscal year and (ii) such smaller number