Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 46

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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8.83, at which time all PIPE Warrants were exercised.
The Company received approximately $0.2 million of proceeds from the exercise of the Warrants, all of which was used to pay down the
October 2024 Nirland Note. As of March 31, 2025, there are no outstanding PIPE Warrants.

A.G.P.
2024 Warrants

As
partial consideration for an advance issued to the Company by A.G.P. on October 29, 2024, the Company issued A.G.P. Warrants (the “A.G.P.
2024 Warrants”) to purchase up to 28,625 shares of the Company’s Common Stock at an exercise price of $10.48 per share. The
Company determined that the A.G.P. 2024 Warrants should be classified as a liability and recorded at fair value through use of a Black-Scholes
option-pricing model. Refer to Note 3 above for additional information.

    26

15.
Commitments and Contingencies

Legal
Proceedings

The
Company is subject to certain claims and contingent liabilities that arise in the normal course of business. While we do not expect that
the ultimate resolution of any of these pending actions will have a material effect on our consolidated results of operations, financial
position or cash flows, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action,
does not become material in the future.

In
August 2023, prior to the Business Combination, our now wholly-owned subsidiary, Conduit Pharmaceuticals Limited, received a letter from
Strand Hanson Limited (“Strand”) claiming it was owed advisory fees pursuant to a previously executed letter. Conduit rejected
the claim from Strand and disputed the substance of the letter in full. Following such rejection, on September 7, 2023, Strand filed
a claim in the Business and Property Courts of England and Wales claiming it is entitled to be paid the sum of $2
million and, as a result of the completion of
the Business Combination, to be issued 65,000
shares of common stock. As of March 31, 2025,
a potential contingency of $0.4 million is considered probable and reasonably estimable and as such, the Company accrued an estimated
liability in the accompanying financial statements. The trial in this matter remains scheduled for October 20, 2025. We intend to vigorously
defend against these claims. Regardless