Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 220

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 220
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on October 14, 2021, 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 support services provided to members of our Management Team and other
expenses and obligations of our Sponsor, pursuant to the Administrative Services Agreement. Upon completion of our initial Business Combination
or our liquidation, we will cease paying these monthly fees. Under the Administrative Services
Agreement, there was an aggregate amount of $160,000 and $40,000 outstanding for the years ending December 31, 2024 and 2023, respectively,
and there was $120,000 expenses incurred during the years ending December 31, 2024 and 2023. The Legacy Sponsor assigned the Administrative
Services Agreement to our Sponsor on August 31, 2023 in connection with the Sponsor Handover.

Compensation

No
compensation of any kind, including finder’s and consulting fees, has been or will be paid by us to the Sponsors, Prior Directors
and Officers, members of our Management Team, or any of their respective affiliates, for services rendered prior to or in connection
with the completion of an initial Business Combination. In addition, these individuals are reimbursed for any out-of-pocket expenses
incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on
suitable Business Combinations. Our Audit Committee reviews on a quarterly basis all payments that were made by us to the Sponsors, Prior
Directors and Officers, members of our Management Team or our or their affiliates.

After
our initial Business Combination, members of our Management Team who remain with us may be paid consulting, management or other fees
from the combined company with any and all amounts being fully disclosed to our shareholders, to the extent then known, in the proxy
solicitation or tender offer materials, as applicable, furnished to our shareholders, such as the EEW Registration Statement. It is unlikely
the amount of such compensation will be known at the time of distribution of such tender offer materials or at the time of a general
meeting held to consider our initial Business Combination, as applicable, as it will be up to the directors of the post-combination business
to determine executive officer and director compensation.

Working
Capital Loans and Promissory Notes

In
order to finance transaction costs in connection with an intended initial Business Combination, our Initial
Shareholders, Sponsors