Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 118

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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all Class A Ordinary Shares and equity linked securities issued or deemed issued in connection with a Business Combination (excluding
any shares or equity linked securities issued, or to be issued, to any seller in a Business Combination, and any 2021 Note Warrants or
2024 Note Warrants). Holders of Founder Shares may also elect to convert those Class B Ordinary Shares into an equal number of Class
A Ordinary Shares, subject to adjustment as provided above, at any time.

The
Company may issue additional ordinary or preference shares to complete its Business Combination or under an employee incentive plan after
completion of its Business Combination.

NOTE
10 - FAIR VALUE MEASUREMENTS

The
following table presents information about the Company’s assets and liabilities that are measured at fair value at September 30,
2025 and December 31, 2024, 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  
    September 30, 2025  
    Level  
    December 31, 2024 
  
    Liabilities: 

    Private Placement Warrants (1) 
    Level 2  
    $241,603  
    Level 2  
    $48,321 
  
    Public Warrants (1) 
    Level 2  
    $354,008  
    Level 2  
    $70,802 
  
    Non-redemption Liability (1) 
    Level 3  
    $6,025,173  
    Level 3  
    $4,028,008 
  
    Polar Capital Investment Payable 
    Level 3  
    $227,273  
    Level 3  
    $227,273 

    (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 unaudited condensed 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