Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 107

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 fair value method in the allocation of proceeds to the debt and equity instruments
issued in connection with the Polar Capital Investment. As of September 30, 2025 and December 31, 2024, an aggregate of $1,022,727 had
been allocated as debt discount to reduce the fair value of the Polar Capital Investment to $227,273 as liabilities on the accompanying
balance sheets. Further, as of September 30, 2025 and 2024, $0 and $204,549, respectively, is allocated to non-redeemable Class A Ordinary
Shares and presented as additional paid-in capital on the accompanying unaudited condensed statements of changes in shareholders’
deficit.

Administrative
Services Agreement

Commencing
on October 14, 2021, and until completion of the Company’s initial Business Combination or liquidation, the Company may reimburse
the Sponsors up to an aggregate amount of $10,000 per month for office space and secretarial and administrative support pursuant to the
Administrative Services Agreement. Per the Administrative Services Agreement, it is at the Company’s option as to whether or not
to pay this administrative fee. The Legacy Sponsor assigned the Administrative Services Agreement to the Sponsor on August 31, 2023,
in connection with the Sponsor Handover. For the three and nine months ended September 30, 2025, the total administrative expenses were
$30,000 and $90,000, respectively. There was $30,000 and $90,000 paid for the three and nine months ended September 30, 2024, respectively.
As of September 30, 2025 and December 31, 2024, there was $250,000 and $160,000, respectively, accrued, but not paid.

NOTE
6 - COMMITMENTS AND CONTINGENCIES

Registration
Rights

The
holders of the Founder Shares, Private Placement Warrants and any 2021 Note Warrants or 2024 Note Warrants (and in each case, holders
of their underlying securities, as applicable) are entitled to registration rights pursuant to the Registration Rights Agreement, requiring
the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to the Class A Ordinary
Shares). The holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that
the Company register such securities. In addition, the holders have certain “piggyback” registration rights