Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 678

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 3
Chunk 678
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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, has been or will be paid by us to the Sponsors, Prior Directors
and Officers, members of our Management Team, or any of their respective affiliates, for services rendered prior to or in connection
with the completion of an initial Business Combination. In addition, these individuals are reimbursed for any out-of-pocket expenses
incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on
suitable Business Combinations. Our Audit Committee reviews on a quarterly basis all payments that were made by us to the Sponsors, Prior
Directors and Officers, members of our Management Team or our or their affiliates.

After
our initial Business Combination, members of our Management Team who remain with us may be paid consulting, management or other fees
from the combined company with any and all amounts being fully disclosed to our shareholders, to the extent then known, in the proxy
solicitation or tender offer materials, as applicable, furnished to our shareholders, such as the EEW Registration Statement. It is unlikely
the amount of such compensation will be known at the time of distribution of such tender offer materials or at the time of a general
meeting held to consider our initial Business Combination, as applicable, as it will be up to the directors of the post-combination business
to determine executive officer and director compensation.

Working
Capital Loans and Promissory Notes

In
order to finance transaction costs in connection with an intended initial Business Combination, our Initial
Shareholders, Sponsors or an affiliate of the Initial Shareholders or Sponsors, or certain of our Prior Directors and Officers or current
directors and officers may, but are not obligated to, loan us Working Capital Loans as may be required on a non-interest basis.
If we complete an initial Business Combination, we would repay such Working Capital Loans. In the event that the initial Business Combination
does not close, we may use a portion of the working capital held outside the Trust Account to repay such Working Capital Loans but no
proceeds from our Trust