Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 93

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 Convertible Promissory Note Payable immediately prior to the amendment, and (ii) the $0.7
million repayment of the Convertible Promissory Note Payable. The $0.1
million gain on debt extinguishment was recorded within other income (expense) in the condensed consolidated statement of operations
and comprehensive loss for the six months ended June 30, 2025.

In
connection with the Settlement Agreement, the Company entered into a consulting agreement with a third party to negotiate the settlement
of the Convertible Promissory Note Payable with the loan holder on behalf of the Company. In exchange for negotiating the Settlement Agreement, the Company
agreed to pay $0.1 million through the issuance of shares of Common Stock or cash. On March 31, 2025, the Company issued 4,872 shares
of Common Stock. The number of shares issued was determined based on the agreement amount of $0.1 million, divided by the closing share
price on March 28, 2025 (prior trading date) of $13.35. The $0.1 million was recorded as interest expense in the condensed consolidated
statement of operations and comprehensive income loss for the six months ended June 30, 2025.

For
the three months ended June 30, 2025 and 2024, the Company incurred interest expense on the Convertible Promissory Note Payable of zero
and $40,000, respectively. For the six months ended June 30, 2025 and 2024, the Company incurred interest expense on the Convertible
Promissory Note Payable of $0.1 million and $0.1 million, respectively.

    14

August
2024 Nirland Note

On
August 6, 2024, the Company entered into August 2024 Nirland Note with Nirland Limited (“Nirland”), a related party of the Company, pursuant to which
the Company issued and sold to Nirland the August 2024 Note in the original principal amount of $2.7
million, inclusive of a $0.5
million original issuance discount. See Note 10 for further reference to the relationship between the Company and Nirland. Of the
total amount of the August 2024 Nirland Note, $1.7
million was issued upon execution of the August 2024 Nirland Note. The balance of $0.5
million was provided to the Company when the