Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024140
Chunk: 101

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 101
---
1 million in February 2025, in which no obligations remain under the
terms of the Loans. No interest expense was recorded for each of the three and six months ended June 30, 2025.

October
2024 Nirland Note

On
October 28, 2024, the Company issued a promissory note (the “October 2024 Nirland Note”) to Nirland, a related party, in
the original principal amount of $0.6 million in exchange for funds in such amount. See Note 15 for further reference to the relationship
between the Company and Nirland. The October 2024 Nirland Note bore interest at a rate of 12% per annum, was due and payable semi-annually
in arrears, and was scheduled to mature on October 31, 2025. If an event of default under and as defined in the October 2024 Nirland
Note occurs, the interest rate would be increased to 18% per annum or to the maximum rate permitted by law. In connection with
the October 2024 Nirland Note, the Company has agreed to pay Nirland a 1% arrangement fee, which was included with the principal and
interest owed under the October 2024 Nirland Note. The 1% arrangement fee is accounted for as a debt discount and was amortized to interest
expense, net in the consolidated statement of operations and comprehensive income (loss) using the effective interest method over the
life of the October 2024 Nirland Note.

On
December 11, 2024, the Company reduced the exercise price of the PIPE Warrants held by Nirland to $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 were used
to pay down the October 2024 Nirland Note.

The
Company repaid principal and interest of $0.1 million, $0.2 million, and $0.1 million on January 14, 2025, January, 31, 2025, and February
7, 2025, respectively. As of June 30, 2025, no obligations remain under the October 2024 Nirland Note.

During
the three and six months ended June 30, 2025, the Company recorded zero
and approximately $8,000
 of interest expense, respectively.