Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 152

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 152
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basis at December 31, 2024, and December 31, 2023, and indicates the fair value hierarchy of the valuation inputs the Company utilized
to determine such fair value:

SCHEDULE
OF ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS

    Description 
    Level 
    December 31, 2024  
    Level 
    December 31, 2023 
  
    Liabilities: 

    Private Placement Warrants (1) 
    Level 2 
    $48,321  
    Level 2 
    $238,704 
  
    Public Warrants (1) 
    Level 2 
    $70,802  
    Level 2 
    $349,760 
  
    Non-redemption Liability (1) 
    Level 3 
    $4,028,008  
    N/A 
    $- 
  
    Polar Capital Investment Payable 
    Level 3 
    $227,273  
    Level 3 
    $90,909 

    (1)
    Measured
    at fair value on a recurring basis.

Warrants

The
Warrants are accounted for as liabilities pursuant to ASC 815-40 and are measured at fair value as of each reporting date. Changes in
the fair value of the Warrants are recorded in the accompanying statements of operations at the end of each period. Transfers to/from
Levels 1, 2 and 3 are recognized at the beginning of the reporting period in which a change in valuation technique or methodology occurs.
The Warrants are accounted for as liabilities in accordance with ASC 815-40, and are presented within warrant liabilities on the accompanying
balance sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value
presented within change in fair value of warrant liabilities in the accompanying statements of operations.

Upon
consummation of the Initial Public Offering on October 19, 2021, the Warrants were classified as Level 3 due to unobservable inputs used
in the initial valuation. On December 9, 2021, the Public Warrants surpassed the 52-day threshold waiting period to be publicly traded
in accordance with the IPO Registration Statement. Once publicly traded, the observable input qualifies the liability for treatment as
a Level 1 liability. The estimated fair value of the Public Warrants was transferred from a Level 1 measurement to a