Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 616

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 616
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,637,300 

NOTE
9 – SHAREHOLDERS’ DEFICIT

Preference
Shares

The
Company is authorized to issue 1,000,000 preference shares with $0.0001 par value. As of December 31, 2024 and 2023, there were no preference
shares issued or outstanding.

Class
A Ordinary Shares

The
Company is authorized to issue up to 200,000,000 Class A Ordinary Shares, $0.0001 par value per share. Holders of the Class A Ordinary
Shares are entitled to one vote for each share. As of December 31, 2024 and 2023, there were 5,681,485 and 5,794,628 Class A Ordinary
Shares issued and outstanding, respectively. Of the outstanding Class A Ordinary Shares, 2,481,485 and 5,194,628 were subject to possible
redemption at December 31, 2024 and 2023, and therefore classified outside of permanent equity.

Class
B Ordinary Shares

The
Company is authorized to issue up to 20,000,000 Class B Ordinary Shares, $0.0001 par value per share. Holders of the Class B Ordinary
Shares are entitled to one vote for each share. At December 31, 2024 and 2023, there were 2,110,122 and 4,710,122 Class B Ordinary Shares
issued and outstanding, respectively. The Company originally issued 5,750,000 Class B Ordinary Shares, and 439,878 Class B Ordinary Shares
were forfeited in the partial exercise of the Over-Allotment Option. On October 19, 2023, following approval by the Company’s shareholders
of the Founder Share Amendment Proposal at the 2023 EGM, the Sponsors converted an aggregate of 600,000 Class B Ordinary Shares on a
one-for-one basis into Class A Ordinary Shares in the 2023 Founder Share Conversion. As of December 31, 2023, pursuant to the 2023 Non-Redemption
Agreements, the Sponsor agreed to transfer 749,810 Class B Ordinary Shares to certain investors on or promptly after the consummation
of the Business Combination. On July 15, 2024, the Sponsors converted an aggregate of 2,600,000 Class B Ordinary Shares on a one-for-one
basis into Class A Ordinary Shares in the 2024