Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 103

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 103
---
Shares at $223,000, or approximately $5.56 per share on a weighted-average basis. As of September 30, 2025, pursuant to the various non-redemption
agreements, the Sponsor has agreed to transfer 782,490 Class B Ordinary Shares to certain investors on or promptly after the consummation
of the Business Combination.

As
of September 30, 2025 and December 31, 2024, the Company estimated the aggregate fair value of these 782,490 and 742,490 Founder Shares,
respectively, at $6,025,173 and $4,028,008, or approximately $7.70 and $5.43 per share, respectively, on a weighted-average basis. The
Company considered the estimated probability of the consummation of a Business Combination, estimated concessions and estimated cost
of carrying charges to eliminate the investor’s exposure to changes in the price of those Class B Ordinary Shares. The fair value
of the Class B Ordinary Shares was determined to be an expense in accordance with SAB 5T and classified as a liability due to the variability
in the number of Founder Shares to be transferred, depending on the timing of the Business Combination.

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, the Sponsors, affiliates of the Sponsors, or the Company’s
former officers and directors or current directors or officers may, but are not obligated to, loan the Company funds as may be required
(such loan from the Legacy Sponsor, its affiliates or the former officer and directors, the “2021 Working Capital Loan,”
and such loan from the Sponsor, its affiliates or the current directors or offices, the “2024 Working Capital Loan,” and
together, the “Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes would
either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000
of notes may be converted upon consummation of a Business Combination into warrants at a price of $1.50 per warrant. These warrants would
be identical to the Private Placement Warrants. In the event that a Business Combination does not close, the Company may use a portion
of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used
to repay the Working Capital Loans.

202