Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 212

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 212
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 Nirland Note”) to Nirland in the original
principal amount of $0.6 million in exchange for funds in such amount. The October 2024 Nirland Note bears interest at a rate of 12%
per annum, is due and payable semi-annually in arrears, and matures on October 31, 2025. If an event of default under and as defined
in the Nirland Note occurs, the interest rate will be increased to 18% per annum or to the maximum rate permitted by law. In
connection with the Nirland Note, the Company has agreed to pay Nirland a 1% arrangement fee, which will be included with the
principal and interest owed under the Nirland Note. The Company paid down $0.2 million of the October 2024 Nirland Note on December
11, 2024 and as of the date of filing this Annual Report, such note has been repaid in full. Refer to Note 8 and Note 20 to our
financial statements included elsewhere in this Annual Report.

Working
Capital

We
currently anticipate that cash required for working capital for the next 12 months is approximately $22.9 million, which includes forecasted
research and development costs of $6.0 million, forecasted operating expenses of $6.2 million, accrued expenses and other current liabilities
of $3.4 million, a convertible promissory note payable, if not converted prior to maturity of $6.0 million, a convertible promissory
note, if not converted prior to maturity, of $0.8 million and loans payable due within the next 12 months of $0.5 million. We do anticipate
being able to fund required working capital for the next 12 months with cash and cash equivalents on hand and current borrowings. Management
believes that we will be able to fund cash required for the next 12 months through borrowings and equity raises. We have historically
been able to access funds through the issuance of debt, and more recently the at the market offering program agreement, and believe we
can continue to obtain funding through such debt financing agreements and Sales  agreement as needed to meet cash requirements
for the next 12 months.

As
of December 31, 2024, we have raised $3.3 million (net of fees) out of the $23.9 million available to us
through the Sales agreement and expect to raise the additional $20.4 million over the next