Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 1094

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 7
Chunk 1094
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 commitments not to redeem the 2023 Non-Redeemed Shares,
the Sponsor agreed to transfer to such investors an aggregate of 749,810 Founder Shares held by the Sponsor promptly following the closing
of the Business Combination (but no later than two business days after the satisfaction of the requisite conditions to such transfer).

We
estimated the aggregate fair value of the 749,810 Founder Shares attributable to such investors pursuant to the 2023 Non-Redemption Agreements
to be $3,444,008 or on a weighted average of
$4.59 per share, which is estimated by taking into consideration the estimated probability of the consummation of a Business Combination,
estimated concessions and estimated cost of carrying charges to eliminate the investors’ exposure to changes in the price of their
Founder Shares. The fair value of the Founder Shares was determined to be an expense in accordance with SEC Staff Accounting Bulletin
Topic 5T, “Accounting for Expenses or Liabilities Paid by Principal Stockholder(s)”(the “SAB 5T”).

Between
July 17, 2024 and July 18, 2024, we entered into the 2024 Non-Redemption Agreements with our Sponsor and unaffiliated, third-party investors
in exchange for such investors agreeing not to redeem an aggregate of 2,475,000 Public Shares in connection with the vote to approve
the 2024 Extension Amendment Proposal at the 2024 EGM. In exchange for these commitments not to redeem the 2024 Non-Redeemed Shares,
the Sponsor agreed to transfer to such investors an aggregate of (i) 412,498 Founder Shares held by the Sponsor for the first five (5)
months of the extension of the Combination Period from July 19, 2024 to December 19, 2024 pursuant to the 2024 Extension Amendment Proposal
and (ii) 82,498 Founder Shares held by the Sponsor per month, for each additional month of the extension of the Combination Period from
December 19, 2024 until April 19, 2025, as needed pursuant to the 2024 Extension Amendment Proposal, in connection with the closing of
the Business Combination, provided that (i) the investors did not exercise their redemption rights with respect to the 2024 Non-Redeemed
Shares in connection with the 2024 EGM and (ii) the 2024 Extension Amendment Proposal was approved.

In
connection with our entry into the