Company: CDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022373
Chunk: 21

Company: CDT Equity Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 21
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of $0.4 million for the nine months ended September 30, 2025.

For
the three and nine months ended September 30, 2025, the Company recorded $0.1 million and $0.2 million of interest expense related to
the deferred commission payable balance in the condensed consolidated statement of operations and comprehensive income loss, respectively.

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, at which time the Deferred Commission Payable balance was removed. 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.

Per
the terms of the A.G.P. Convertible Note, conversion could not occur prior to the Company having sufficiently authorized shares of Common
Stock to permit the entire conversion of the convertible promissory note. In addition, the conversion of the A.G.P. Convertible Note
could also not occur prior to receipt of stockholder approval to provide for such conversion, and subsequent issuance of the Company’s
Common Stock, pursuant to the stockholder approval rules under the rules and regulations of The Nasdaq Stock Market. Further, A.G.P.
will not be entitled to receive the Company’s Common Stock upon conversion, if such conversion would result in A.G.P. owning greater
than 9.99% of the Company’s then currently outstanding Common Stock. A.G.P. is also entitled to resale registration rights as identified
in the A.G.P. Convertible Note. As of January 25, 2025, the Company had sufficient authorized shares of Common Stock to permit the entire
conversion of the A.G.P. Convertible Note and the Company had also received shareholder approval to allow for the entire conversion of
the convertible promissory note.

    15

The
Company may prepay the A.G.P. Convertible Note in whole or in part. In the event of certain Events of Default (as defined in the A.G.P.
Convertible Note), all outstanding principal and accrued interest under the A.G.P. Convertible Note will become, or may become at A.G.P.’s
election, immediately due and payable to the A