Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 49

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 the Merger. The warrants
provide the advisor the right to purchase up to 36 shares of Common Stock at an exercise price of $16,500 per share.

The
warrants issued to the PIPE Investors and the advisor contain materially the same terms and are exercisable for a period of five years,
beginning on October 22, 2023.

On
December 11, 2024, the Company reduced the exercise price of the PIPE Warrants to be $132.45, 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 June 30, 2025, there are no outstanding PIPE Warrants.

    28

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 1,908 shares of the Company’s Common Stock at an exercise price of $157.20 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 for additional information.

14.
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. As of June 30, 2025, a contingency of $0.4 million is considered probable and reasonably estimable
in relation to the Company’s legal proceedings. As such, the Company accrued an estimated liability in the accompanying financial
statements.

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. CDT rejected
the claim from Strand and disputed the substance