Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 25

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 2025, Nirland exercised their conversion option and converted $1.8
million of principal in exchange for 901,200 shares
of common stock. In total the Company issued common stock with a fair value of $3.7 million
based on the closing stock price on each conversion date and recorded a loss on the change in fair value of $1.9
million, calculated as the difference between the fair value of the shares issued and the portion of principal and interest settled.
On February 12, 2025, the Company repaid the remaining unpaid principal and interest of $0.9 million
in cash and recorded a gain on extinguishment of $0.1
million, calculated as the difference between the remaining fair value of August 2024 Nirland Note, less the amount of cash paid. As
of March 31, 2025, no
obligations remained under the August 2024 Nirland Note.

For
the three months ended March 31, 2025, the Company recorded $24,000 of interest expense, presented within Interest expense, net,
in the condensed consolidated statement of operations and comprehensive loss.

A.G.P.
Convertible Note

On
November 25, 2024, the Company issued to A.G.P. the “A.G.P. Convertible Note in the principal
amount of $5.7 million to evidence  A.G.P.’s currently owed deferred commission payable. Refer to  Note 6 for additional
information. Unless earlier converted as specified in the Convertible Note, the principal amount, plus all accrued but unpaid interest,
is due on November 25, 2025 (the “Maturity Date”). The convertible promissory note accrues interest at 5.5% per annum.

At
any time prior to the full payment of the convertible promissory note, provided that the A.G.P. has given at least three business
days written notice to the Company, A.G.P., in its sole discretion, may elect to have all or any portion of the outstanding
principal amount and all interest accrued converted into shares of the Company’s common stock, at a fixed price of $10.00 (or
following any reverse splits that may occur in a ratio greater than 10 to 1, the lower of such reverse split price and the market
price per share at the time of the conversion date, but in no event less than $1.00
(the “Conversion Price Floor”), subject to adjustment