Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 63

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 Combination Period is further extended. It is uncertain that we will be able to consummate a Business Combination by this
time and lack the financial resources to sustain operations for a reasonable period of time, which is considered to be one year from
the issuance date of the financial statements contained elsewhere in this Report. If a Business Combination is not consummated by this
date, there will be a mandatory liquidation and subsequent dissolution of our Company. We cannot provide any assurance that (i) new financing
will be available to us on commercially acceptable terms, if at all, or (ii) that our plans to consummate an initial Business Combination
will be successful. We have determined that the liquidity condition and mandatory liquidation should a Business Combination not occur,
and potential subsequent dissolution raises substantial doubt about our ability to continue as a going concern. The financial statements
and notes thereto contained elsewhere in this Report do not include any adjustments that might result from our inability to continue
as a going concern.

Contractual
Obligations

Administrative
Services Agreement

Commencing
on October 14, 2021, and until completion of the Company’s initial Business Combination or liquidation, the Company may reimburse
the Sponsors up to an aggregate amount of $10,000 per month for office space and secretarial and administrative support pursuant to the
Administrative Services Agreement. Per the Administrative Services Agreement, it is at the Company’s option as to whether or not
to pay this administrative fee. The Legacy Sponsor assigned the Administrative Services Agreement to the Sponsor on August 31, 2023,
in connection with the Sponsor Handover. For the three and six months ended June 30, 2025, the total administrative expenses were $30,000
and $60,000, respectively. There was $30,000 and $60,000 paid for the three and six months ended June 30, 2024, respectively As of June
30, 2025 and December 31, 2024, there was $220,000 and $160,000, respectively, accrued, but not paid.

Registration
Rights

The
holders of the Founder Shares, Private Placement Warrants and any 2021 Note Warrants and 2024 Note Warrants (and in each case holders
of their underlying securities, as applicable) are entitled to registration rights pursuant to the Registration Rights Agreement, requiring
us to register such securities for resale (in the case of the Founder Shares, only after conversion to our