Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 873

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 873
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 the Loans holders amended the loan agreements (the “Loans Amendment”) to extend the maturity
date for the Loans to December 19, 2024. The Loans Amendment also modified the payment terms for the Loans from a cash payment of
£85,000 per loan to (1) a cash payment of £60,000, (2) £25,000 worth of shares of Common Stock converted
into USD at the prevailing exchange rate, to be issued at the closing market price on the date prior to issuance, and in consideration
for the extension, and (3) 2,500 additional shares of Common stock. On October 11, 2024, the Company issued each of the Loan
holders 5,690 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