Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 751

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 751
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,690 shares (11,380 in total). The Loans remain outstanding as of December 31, 2024.

The
extension was accounted for as a debt extinguishment. On October 9, 2024, the Company recorded a loss on debt extinguishment of approximately
$42 thousand calculated as the difference between (i) the $0.2 million carrying value of the Loans immediately prior to the Loans Amendment
(ii) the $0.1 million fair value of the Loans immediately after the Loans Amendment and (iii) the $0.1 million fair value of the shares
issued to the holder as consideration for extending the maturity date. The difference between the $0.2 million carrying value immediately
prior to the Loans Amendment and the $0.1 million fair value immediately after the Loans Amendment was recorded as a debt discount and
amortized over the term date of the Loans using the effective interest method.

During
the year ended December 31, 2024, the Company incurred interest expense on the Loans of approximately $40
thousand related to the amortization of the debt
discount recorded as a result of the Loans Amendment. No
interest expense was recorded for the year ended
December 31, 2023. The Loans remained outstanding as of December 31, 2024, therefore the Company was considered to be in default. The
Company repaid the lenders the outstanding principal balance of $0.1
million in February 2025. See Note 20 for additional
details.

    F-23

October
2024 Nirland Note

On
October 28, 2024, the Company issued a promissory note (the “October 2024 Nirland Note”) to Nirland, a related party, in
the original principal amount of $0.6
million in exchange for funds in such amount. See Note 16 for further reference to the relationship between the Company and Nirland.
The 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