Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 757

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 757
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In
consideration of the services, Conduit agreed to pay Sarborg an initial cash payment of $0.2
million and $0.2
million payable through the issuance of 22,727
shares of common stock, determined by the closing price on the day preceding the execution of the Sarborg Service Agreement.
Further milestone payments payable in conjunction with the achievement of certain milestones over the term of the Sarborg Service
Agreement, totaling up to $1.8
million, are payable in cash or shares, at the discretion of Conduit. Sarborg will be reimbursed for pre-approved, necessary, and
reasonable out-of-pocket expenses directly incurred in connection with the performance of the services.

Management
determined that the cost incurred under the Sarborg Service Agreement should be recorded to research and development expense in the
statement of operations and comprehensive income (loss), as the Sarborg Service Agreement is designed to provide the
Company with software/dashboard to aid in research and development activities. The initial cash payment of $0.2
million and issuance of 22,727
shares of Common Stock were recorded to prepaid expense and will be amortized over the initial term of the Sarborg Service Agreement to research and
development expense. As of December 31, 2024, the 22,727
shares of common stock were yet to be issued and are recorded within accrued expense and other current liabilities in the
consolidated balance sheets. As of December 31, 2024, the Company has recognized $0.2
million of amortization within research and development expense in the consolidated statement of operations and comprehensive income
(loss).

11.
Share Based Compensation

On
September 22, 2023, in connection with the Merger, the Company adopted the Conduit Pharmaceuticals Inc. 2023 Stock Incentive Plan
(the “2023 Plan”). The 2023 Plan became effective upon the closing of the Merger. The 2023 Plan initially provided for
the issuance of up to 114,976 shares
of Common Stock. Pursuant to the 2023 Plan’s “evergreen” provision, on February 6, 2025, the Company increased the
number of shares of Common Stock available for issuance under the 2023 Plan by 69,240
shares. Total shares available for issuance is 154,125 effective January
1, 2025. The number of authorized shares will automatically increase on January 1, 202