Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 1204

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 13
Chunk 1204
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. 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 payable on December 31, 2024.

As
noted above, the Company issued to A.G.P. warrants to purchase up to 28,625
shares of the Company’s common stock. The Company determined that the Bridge Note and Warrant Agreement issuance were part of
a basket transaction and allocated the net proceeds using the residual value method. The warrants issued under the Warrant Agreement
were initially recorded at their fair value of $0.2
million. The warrants were classified as derivative liabilities because they do not meet the criteria in ASC 815-40 to be considered
indexed to the entity’s own stock