Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 20

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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 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 September 30, 2025, no obligations remained
under the August 2024 Nirland Note.

For
the nine months ended September 30, 2025, the Company recorded $24,000 of interest expense, presented within interest expense, net, in
the condensed consolidated statement of operations and comprehensive loss. No interest expense was recorded for the three months ended
September 30, 2025 as the August 2024 Nirland Note was settled prior to the third quarter of 2025.

A.G.P.
Convertible Note

A.G.P
was a financial advisor to both MURF and Old Conduit in connection with the Merger transaction. Upon the completion of the Merger, A.G.P.:
(i) received a cash fee of $6.5 million, 867 shares of Common Stock, and warrants to purchase 36 shares of Common Stock at an exercise
price of $16,500 per share pursuant to its engagement agreement with Old Conduit entered into on August 2, 2022, and (ii) agreed to defer
payment, to be paid in the future under certain circumstances by a date no later than March 21, 2025, of $5.7 million of fees plus annual
interest of 5.5% (the “Deferred Commission Payable”) as a result of its engagement for MURF’s IPO. Accrued interest
was recorded as a liability on the Company’s consolidated balance sheet under accrued expenses and other current liabilities and
totaled $0.4 million as of December 31, 2024. During the nine months ended September 30, 2025, the Company reached an agreement with
A.G.P. to waive all previously accrued interest. As such, the Company removed accrued interest of $0.4 million and recorded other income