Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 1136

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 11
Chunk 1136
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 and the A.G.P 2024 Warrants (collectively the “Liability Classified Warrants”) are 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
as the warrants could be settled for an amount that is not equal to the difference between the fair value of a fixed number of the entity’s
shares and a fixed monetary amount. The Liability Classified Warrants are initially measured at fair value and are remeasured at fair
value at subsequent financial reporting period end dates and upon exercise (see Note 7 for additional information regarding fair value).

On
December 11, 2024, the Company reduced the exercise price of the PIPE Warrants to be $8.83, at which time all PIPE Warrants were exercised.
The Company received approximately $0.2 million of proceeds from the exercise of the Warrants, all of which was used to pay down the
October 2024 Nirland Note.

For
the years ended December 31, 2024, and December 31, 2023, the Company remeasured the fair value of the Liability Classified Warrants
and recorded a gain on the change in the fair value of $0.2
million and $0.1
million, respective. The gains were recorded
to other income (expense), net, on the consolidated statements of operations and comprehensive income (loss). As of December 31, 2024
and December 31, 2024, the balance sheets contained warrant liabilities of $0.1
million and $0.01
million, respectively.

    F-36

19.
Segments

The
Company has one operating segment focused on the research and development of clinical assets. The accounting policies of the single operating
segment are identical to those described in Note 1. The CODM, which the Company has identified as David Tapolczay, Chief Executive
Officer, manages the Company’s operations on a consolidated basis, assesses performance for the operating segment and decides how
to allocate resources based on consolidated net loss, which is reported on the consolidated statements of operations and comprehensive
income (loss). Depreciation expense, amortization expense, stock-based compensation expense, and non-cash lease expense are significant
noncash items included in consolidated net loss reviewed by the CODM and are reported on the consolidated statements of cash flows. The
measure of segment assets is reported on the consolidated balance sheets as total consolidated