Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 58

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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 per Public Share (net of taxes paid or payable, as of September 30,
2025).

As
of September 30, 2025 and December 31, 2024, we held cash of $721 and $27,720, respectively, and current liabilities of $9,050,038 and
$6,162,507, respectively. Further, we expect to continue to incur significant costs in the pursuit of our initial Business Combination.
We cannot assure you that our plans to complete an initial Business Combination will be successful.

Recent
Developments

Through
the date of this filing, the Company has drawn an additional $27,000 on the 2024 Promissory Note. The total outstanding balance on
the 2024 Promissory Note is $1,662,872.

Sponsor
Handover

On
August 30, 2023, our Sponsors entered into the Sponsor Purchase Agreement, and on August 31, 2023, our Sponsors consummated the Sponsor
Handover. Pursuant to the terms of the Sponsor Purchase Agreement, at the Sponsor Handover: (i) the Legacy Sponsor transferred 3,093,036
Founder Shares and 4,645,398 Private Placement Warrants to our Sponsor; (ii) our Sponsor agreed to cause us to pay an aggregated amount
of $300,000 in cash consideration upon closing of the Business Combination at the Legacy Sponsor’s direction to entities or accounts
as directed by the Legacy Sponsor (including the repayment of $125,000 under the 2021 Promissory Note); (iii) our Sponsor entered into
the Registration Rights Agreement Joinder; (iv) the Legacy Sponsor assigned the Administrative Services Agreement to our Sponsor; (v)
Neemuchwala, Burhan Jaffer, Satish Gupta, Steven Freiberg, Deborah C. Hopkins and Bill Owens (collectively, our “Prior Directors
and Officers”) resigned, and each member of our management team was appointed by our Sponsor; and (vi) we entered into a letter
agreement amendment with the Sponsors and the Prior Directors and Officers.

22

Extensions
of our Combination Period

We
initially had until October 19, 2023, 24 months from the closing of the Initial Public Offering, to consummate our initial Business Combination.

On
October 19, 2023, we held the 2023 EGM, at which our shareholders approved the Charter Amendment Proposals. In connection