Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 125

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 date on which we consummate an initial Business Combination and (ii) the date of our liquidation. If,
prior to the Business Combination, the principal balance of the 2024 Promissory Note has not been paid in full, then, at the Sponsor’s
option and subject to certain conditions, up to $1,375,000 of the unpaid principal amount of the 2024 Promissory Note may
be converted into the 2024 Note Warrants to purchase Class A Ordinary Shares at a conversion price of $1.50 per 2024 Note Warrant. The
2024 Note Warrants shall be identical to the Private Placement Warrants. The 2024 Note Warrants and their underlying securities are entitled
to the registration rights set forth in the 2024 Promissory Note. As of March 31, 2025 and December 31, 2024, there was $1,381,019 and
$1,115,000, respectively, outstanding under the 2024 Promissory Note.

24

Polar
Capital Investment

On
September 6, 2023, we entered into the Polar Subscription Agreement with Polar and the Sponsor, pursuant to which Polar agreed to make
the Polar Capital Investment to us of up to $1,500,000. As of March 31, 2025 and December 31, 2024, we had drawn $1,250,000 and $500,000
under the Polar Capital Investment, respectively, that was fair valued at $227,273 and $90,909, respectively. For more information on
the Polar Subscription Agreement and Polar Capital Investment, see “Investor Subscription Agreement” below.

Demand
Deposit Account Transfer

On
October 19, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the
Trust Account in an interest-bearing demand deposit account at Citibank, N.A., with Continental continuing to act as trustee, until the
earlier of the consummation of our initial Business Combination or our liquidation. As a result, following the liquidation of investments
in the Trust Account, the remaining proceeds from the Initial Public Offering and Private Placement are no longer invested in U.S. government
securities or money market funds invested in U.S. government securities.

Going
Concern

Based
on the foregoing, we believe that we may not have sufficient working capital to meet our needs through the consumm