Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 312

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 312
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 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 1%
arrangement fee is accounted for as a debt discount and will be amortized to interest expense, net in the consolidated statement of
operations and comprehensive income (loss) using the effective interest method over the life of the October 2024 Nirland
Note.

During
the year ended December 31, 2024, the Company recorded approximately $14,000 of interest expense. The interest expense of $14,000 is comprised of (i) accrued interest of $13,000 based on the coupon rate of the debt and (ii) amortization of the debt discount of $1 thousand,
with both components recorded within interest expense, net in the consolidated statement of operations and comprehensive income
(loss). Accrued interest of $13,000 was recorded as a liability on the Company’s consolidated balance sheet within accrued expenses and other current liabilities.
The $1,000 amortization of the debt discount decreased the debt discount contra-liability included within the Loans payable, current portion on
the consolidated balance sheets.

A.G.P.
Bridge Note

On
October 29, 2024, the Company entered into a Bridge Loan Agreement (the “Bridge Agreement”), with A.G.P., pursuant to which
AGP. made an advance (the “Advance”) to the Company in an amount not to exceed $0.6 million (the “Commitment”).
As partial consideration for the Advance, the Company entered into a Common Stock Purchase Warrant Agreement (the “Warrant Agreement”)
and issued AGP warrants to purchase up to 28,625 shares of the Company’s common stock, $0.0001 par value per share, which is equal
to 50% of the sum of the Commitment divided by the closing price of the Company’s Common Stock on October 29, 2024, at an exercise
price of $10.48 per share. Refer to Note 18 for additional information on the warrants issued to A.G.P.

In
connection with the Advance, the Company issued a promissory note (the “A.G.P. Bridge Note”) to A.G.P. in the original principal
amount of $0.6 million. The Bridge Note bears interest at a rate of 4.21% per annum and is due and