Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q/A
Source: 0001641172-25-024123
Chunk: 23

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q/A
Chunk 23
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 |     |       |            402 |     |       |               389 |
| Accrued interest                                     |     |       |              - |     |       |               383 |
| Accrued commission payable                           |     |       |              - |     |       |               107 |
| HMRC payable                                         |     |       |             58 |     |       |               396 |
| Other                                                |     |       |             15 |     |       |                14 |
| Total accrued expenses and other current liabilities |     | $     |          1,045 |     | $     |             1,963 |

| 13 |

5. Convertible Notes Payable

Convertible Promissory Notes Payable

During March 2023, the Company issued a convertible promissory note payable (the “Convertible Promissory Notes Payable”) with an aggregate principal amount of $ 0.8million to a non-related third party. The Convertible Promissory Note Payable had a maturity date of 18 months from the date of issuance.The note carries interest at a rate of 20% annually, which is payable every six (6) months from the date of the note until the maturity date.

On March 6, 2025, the Company reached a Settlement Agreement (the “Settlement Agreement”) with the loan holder to pay $ 0.7million in order to settle the March 2023 Convertible Note in full. The Company repaid the loan holder the settlement amount of $ 0.7million on March 13, 2025 .The Settlement Agreement and subsequent repayment was treated as a debt extinguishment under ASC 470-50. During the three months ended March 31, 2025, the Company recorded a gain on debt extinguishment of $ 0.1million, calculated as the difference between (i) the $ 0.8million carrying value of the Convertible Promissory Note Payable immediately prior to the amendment (ii) the $ 0.7million repayment of the March 2023 Convertible Note. The $ 0.1million gain on debt extinguishment was recorded within other income (expense) in the condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2025.

In connection with the Settlement Agreement, the Company entered into a consulting agreement with a third party to negotiate the settlement of the convertible note with the loan holder on behalf of the Company