Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 551

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 551
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 a financial restatement that would have reduced a previously paid
incentive amount, we can recoup those improper payments from our executive officers. The SEC has also adopted Rule 10D-1 under the Exchange Act (the “SEC Clawback Rule”) that direct national
stock exchanges to require listed companies to implement policies intended to recoup bonuses paid to executives if the company is found
to have misstated its financial results.

On
December 7, 2023, our Board of Directors approved the adoption of the Policy on Recoupment of Incentive Compensation (the “Clawback
Policy”), with an effective date of October 2, 2023, in order to comply with the SEC Clawback Rule and the Nasdaq Rules, as set forth in the Nasdaq Listing Rule 5608 (the
“Nasdaq Clawback Rules”).

The
Clawback Policy provides for the mandatory recovery of erroneously awarded incentive-based compensation from our current and former
executive officers as defined in the SEC Clawback Rule (“Covered Officers”) in the event that we are required to prepare
an accounting restatement, in accordance with the Nasdaq Clawback Rules. The recovery of such compensation applies regardless of
whether a Covered Officer engaged in misconduct or otherwise caused or contributed to the requirement of an accounting restatement.
Under the Clawback Policy, our Board of Directors may recoup from the Covered Officers erroneously awarded incentive compensation
received within a lookback period of the three completed fiscal years preceding the date on which we are required to prepare an
accounting restatement.

The
foregoing description of the Clawback Policy does not purport to be complete and is qualified in its entirety by the terms and conditions
of the Clawback Policy, a copy of which is attached hereto as Exhibit 97 and is incorporated herein by reference.

46

    Item
    11.
    Executive
    Compensation.

None
of our officers or directors have received any cash compensation for services rendered to us, other than our Chief Financial Officer,
who was paid an aggregate of $20,500 and $22,000 for services provided to us in 2024 and 2023, respectively. Commencing on October 19,
2021 through the earlier of closing of our initial Business Combination and our liquidation, we may pay our Sponsor up to $10,000 per
month for office space, utilities, salaries or other cash compensation paid to consultants to our Sponsor, secretarial and administrative