Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 65

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 and the Company lacks the financial resources
it needs to sustain operations for a reasonable period of time, which is considered to be one year from the date of the accompanying
unaudited condensed financial statements. If a Business Combination is not consummated with the Combination Period, there will be a mandatory
liquidation and subsequent dissolution of the Company. The Company cannot provide any assurance that (i) new financing will be available
to it on commercially acceptable terms, if at all, or (ii) that its plans to consummate an initial Business Combination will be successful.
Management has determined that the liquidity condition and mandatory liquidation should a Business Combination not occur, and potential
subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. The accompanying unaudited
condensed financial statements do not include any adjustments that might result from the Company’s 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 nine months ended September 30, 2025, the total administrative expenses were
$30,000 and $90,000, respectively. There was $30,000 and $90,000 paid for the three and nine months ended September 30, 2024, respectively.
As of September 30, 2025 and December 31, 2024, there was $250,000 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 Class A Ordinary Shares).
The holders of the majority of these securities are