Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 750

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 4
Chunk 750
---
 as of December 31, 2024).

As
of December 31, 2024 and 2023, we held cash of $27,720 and $44,046, respectively, and current liabilities of $6,162,507 and $860,274,
respectively. Further, we expect to continue to incur significant costs in the pursuit of our initial Business Combination. We cannot
assure you that our plans to complete an initial Business Combination will be successful.

29

Recent
Developments

Between
December 31, 2024 through the date of this Report, we have drawn an additional $266,019 on the 2024 Promissory Note. The total aggregate
outstanding balance on the 2024 Promissory Note is $1,381,019.

On
March 5, 2025, Nasdaq filed a Form 25-NSE to delist our securities from Nasdaq.

On
March 13, 2025, we filed the 2025 Proxy Statement in connection with an upcoming extraordinary general meeting in lieu of an annual
general meeting of our shareholders to, among other things, seek (i) an extension of the Combination Period from April 19, 2025 to April
20, 2026 and (ii) to eliminate from the Amended and Restated Charter the Redemption Limitation.

Sponsor
Handover

On
August 30, 2023, our Sponsors entered into the Sponsor Purchase Agreement, and on August 31, 2023, our Sponsors consummated the Sponsor
Handover. Pursuant to the terms of the Sponsor Purchase Agreement, at the Sponsor Handover: (i) the Legacy Sponsor transferred 3,093,036
Founder Shares and 4,645,398 Private Placement Warrants to our Sponsor; (ii) our Sponsor agreed to cause us to pay an aggregated amount
of $300,000 in cash consideration upon closing of the Business Combination at the Legacy Sponsor’s direction to entities or accounts
as directed by the Legacy Sponsor (including the repayment of $125,000 under the 2021 Promissory Note); (iii) our Sponsor entered into
the Registration Rights Agreement Joinder; (iv) the Legacy Sponsor assigned the Administrative Services Agreement to our Sponsor; (v)
all Prior Directors and Officers resigned, and each member of our Management Team was appointed by our Sponsor; and (vi) we entered into
the Insider Agreement Amendment with the Sponsors and the