Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 35

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 Offering, or $7,000,000 (or $8,050,000 if the Over-Allotment Option was exercised
in full).

    15

COMPASS DIGITAL ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

On August 11, 2023 and August 14, 2023, the Company
received formal confirmations from Citigroup Global Markets Inc. and J.P. Morgan Securities LLC of their decisions to waive any entitlement
they may have to their deferred underwriting fees payable held in the Trust Account with respect to any Business Combination.

Non-Redemption Agreements

Between October 9, 2023 and October 19, 2023, the
Company entered into agreements with the Sponsor and unaffiliated third-party investors in exchange for such investors agreeing not to
redeem an aggregate of 4,998,734 Public Shares in connection with the vote to approve the Charter Amendment Proposals at the 2023 EGM
(the “2023 Non-Redemption Agreements”). In exchange for these commitments not to redeem such Public Shares, the Sponsor agreed
to transfer to such investors an aggregate of 749,810 Founder Shares held by the Sponsor promptly following the closing of the Business
Combination (but no later than two business days after the satisfaction of the requisite conditions to such transfer). The Company estimated
the aggregate fair value of the 749,810 Class B Ordinary Shares attributable to such investors to be $3,444,008 or on a weighted average
of $4.59 per share, as of October 19, 2023, which is estimated by taking into considerations 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 their Class B Ordinary Shares. The fair value of the Class B Ordinary Shares was determined to be an expense in
accordance with SAB 5T.

Between July 15, 2024 and July 18, 2024, the Company
entered into agreements with the Sponsor and unaffiliated third-party investors (the “2024 Non-Redemption Agreements”) in
exchange for such investors agreeing not to redeem an aggregate of 2,475,000 Public Shares in connection with the vote to approve the
2024 Extension Amendment Proposal at the 2024 EGM.