Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 99

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 99
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 entirety by reference to the 2021 Promissory Note, which is attached as an exhibit to this Report. As of December
31, 2024 and 2023, we had borrowed an aggregate of $125,000 under the 2021 Promissory Note, respectively.

On
November 21, 2024, there was a written agreement put in place for the 2024 Working Capital Loan when we issued the 2024 Promissory Note
in the aggregate principal amount of up to $2,500,000 to the Sponsor. The 2024 Promissory Note was issued in connection with advances
the Sponsor has previously made and may make in the future to us for working capital expenses. The 2024 Promissory Note bears no interest
and is repayable in full upon the earlier of (i) the date on which we consummate an initial Business Combination and (ii) the date of
our liquidation. If, prior to the Business Combination, the principal balance of the 2024 Promissory Note has not been paid in full,
then, at the Sponsor’s option and subject to certain conditions, up to $1,375,000 of the unpaid principal amount of the 2024 Promissory
Note may be converted into the 2024 Note Warrants to purchase Class A Ordinary Shares at a conversion price of $1.50 per 2024 Note Warrant.
The 2024 Note Warrants shall be identical to the Private Placement Warrants. The 2024 Note Warrants and their underlying securities are
entitled to the registration rights set forth in the 2024 Promissory Note. As of December 31, 2024 and 2023, there was $1,115,000 and
$0, respectively, outstanding under the 2024 Promissory Note.

Polar
Capital Investment

On
September 6, 2023, we entered into the Polar Subscription Agreement with the Sponsor and Polar, pursuant to which Polar agreed to fund
up to $1,500,000 to us, subject to certain funding milestones. Once we have reached a defined milestone, upon on at least five (5) calendar
days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment, a Polar Capital Investment,
in order to meet the Sponsor’s commitment to us under a drawdown request. The Polar Capital Investment will be repaid to Polar
by us upon the closing of an initial