Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 128

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 128
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 $44,046 of cash and no cash equivalents as of December 31, 2024 and 2023, respectively.

Cash
Held in Trust Account

At
December 31, 2024 and 2023, the Company had $27,637,300 and $55,347,556, respectively, in cash held in the Trust Account.

At
December 31, 2024 and 2023, all of the assets held in the Trust Account were held in cash. Gains and losses resulting from the change
in fair value of these investments are included in interest earned on cash or investments held in Trust Account in the accompanying statements
of operations.

Class
A Ordinary Shares Subject to Redemption

The
Company accounts for its Ordinary Shares subject to possible redemption in accordance with the guidance in ASC 480. Ordinary Shares subject
to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable Ordinary
Shares (including Ordinary Shares that feature redemption rights that are either within the control of the holder or subject to redemption
upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other
times, Ordinary Shares are classified as shareholders’ deficit. The Ordinary Shares feature certain redemption rights that are
considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, Ordinary
Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit
section of the accompanying balance sheets.

For
the year ended December 31, 2024 and 2023, the Company recorded accretion on the Class A Ordinary Shares of $1,928,109 and $8,914,159,
respectively, to redemption value related to the interest in the Trust Account. For the year ended December 31, 2024 and 2023, the Class
A Ordinary Shares Subject to Redemption were reduced by $29,638,365 and $169,088,048, respectively, related to redemptions. For the year
ended December 31, 2024 and 2023, the Class A Ordinary Shares Subject to Redemption was increased by $0 and $7,187,357, respectively,
related to the waiver of deferred underwriting fees attributable to the Class A Ordinary Shares Subject to Redemption.

Income
Taxes

The
Company complies with the accounting and reporting requirements of FASB ASC Topic