Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 62

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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shall be identical to the Private Placement Warrants. The 2024 Note Warrants and their underlying securities are entitled to the registration
rights set forth in the 2024 Promissory Note. As of June 30, 2025 and December 31, 2024, there was $1,532,122 and $1,115,000, respectively,
outstanding under the 2024 Promissory Note.

24

Polar
Capital Investment

On
September 6, 2023, we entered into the Polar Subscription Agreement with Polar and the Sponsor, pursuant to which Polar agreed to make
the Polar Capital Investment to us of up to $1,500,000. As of June 30, 2025 and December 31, 2024, we had drawn $1,250,000 and $500,000
under the Polar Capital Investment, respectively, that was fair valued at $227,273 and $90,909, respectively. For more information on
the Polar Subscription Agreement and Polar Capital Investment, see “Investor Subscription Agreement” below.

Demand
Deposit Account Transfer

On
October 19, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the
Trust Account in an interest-bearing demand deposit account at Citibank, N.A., with Continental continuing to act as trustee, until the
earlier of the consummation of our initial Business Combination or our liquidation. As a result, following the liquidation of investments
in the Trust Account, the remaining proceeds from the Initial Public Offering and Private Placement are no longer invested in U.S. government
securities or money market funds invested in U.S. government securities.

Going
Concern

Based
on the foregoing, we believe that we may not have sufficient working capital to meet our needs through the consummation of a Business
Combination. Over this period, we will be using these funds for paying existing accounts payable, operating costs, performing due diligence
on prospective target businesses with which to consummate a Business Combination, paying for travel expenditures and structuring, negotiating
and consummating the Business Combination.

In
connection with our assessment of going concern considerations in accordance with FASB ASU Topic 2014-15, “Disclosure of Uncertainties
about an Entity’s Ability to Continue as a Going Concern,” we have until April 20, 2026 to consummate a Business Combination,
unless our