Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 24

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 interest remained outstanding and the August 2024 Nirland Note had a fair
value of $2.8 million.

During
January and February 2025, Nirland exercised their conversion option and converted $1.8 million of principal in exchange for 60,080 shares
of Common Stock. In total the Company issued Common Stock with a fair value of $3.7 million based on the closing stock price on each
conversion date and recorded a loss on the change in fair value of $1.9 million, calculated as the difference between the fair value
of the shares issued and the portion of principal and interest settled. On February 12, 2025, the Company repaid the remaining unpaid
principal and interest of $0.9 million in cash and recorded a gain on extinguishment of $0.1 million, calculated as the difference between
the remaining fair value of August 2024 Nirland Note, less the amount of cash paid. As of June 30, 2025, no obligations remained under
the August 2024 Nirland Note.

For
the three and six months ended June 30, 2025, the Company recorded $24,000
 of interest expense, presented within Interest expense,
net, in the condensed consolidated statement of operations and comprehensive loss.

A.G.P.
Convertible Note

A.G.P was a financial advisor
to both MURF and Old Conduit in connection with the Merger transaction. Upon the completion of the Merger, A.G.P.: (i) received a cash
fee of $6.5 million, 867 shares of Common Stock, and warrants to purchase 36 shares of Common Stock at an exercise price of $16,500 per
share pursuant to its engagement agreement with Old Conduit entered into on August 2, 2022, and (ii) agreed to defer payment, to be paid
in the future under certain circumstances by a date no later than March 21, 2025, of $5.7 million of fees plus annual interest of 5.5%
(the “Deferred Commission Payable”) as a result of its engagement for MURF’s IPO. Accrued interest was recorded as a
liability on the Company’s consolidated balance sheet under accrued expenses and other current liabilities and totaled $0.4 million
as of December 31, 2024. During the six months ended June 30, 2025, the Company reached an agreement with A.G.P. to waive