Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 905

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 5
Chunk 905
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 to the Class B Ordinary
Shares before the Founder Share Conversions, including the
Sponsors’ agreement not to transfer, assign or sell any of its Founder Shares until the earlier to occur of: (i) one year after
the completion of a Business Combination or (ii) the date on which we complete a liquidation, merger, capital share exchange or similar
transaction that results in our shareholders having the right to exchange their Ordinary Shares
for cash, securities or other property. Notwithstanding the foregoing, if the last reported sale price of the Class A Ordinary
Shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and
the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination, the Founder
Shares will be released from the lock-up.

Following
the Sponsor Handover, the Founder Share Conversions and the Extension Redemptions, there were 5,681,485 Class
A Ordinary Shares and 2,110,122 Class B Ordinary Shares issued and outstanding and the Legacy Sponsor
and Sponsor hold approximately 28.45% and 39.70%, respectively, of the issued and outstanding Ordinary Shares.

51

Administrative
Services Agreement

We
currently utilize office space at 195 US Hwy 50, Suite 309, Zephyr Cove, NV 89488, from our Sponsor as our executive offices. Commencing
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,