Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 493

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 493
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 paid in capital on the accompanying statements of changes in shareholders’
deficit.

Administrative
Services Agreement

Commencing
on October 14, 2021, and until completion of the Company’s initial Business Combination or liquidation, the Company may reimburse
the Sponsors up to an aggregate amount of $10,000 per month for office space and secretarial and administrative support pursuant to the
Administrative Services Agreement. Per the Administrative Services Agreement, it is at the Company’s option as to whether or not
to pay this administrative fee. The Legacy Sponsor assigned the Administrative Services Agreement to the Sponsor on August 31, 2023,
in connection with the Sponsor Handover. For the years ended December 31, 2024 and 2023, the total administrative expenses were $120,000.
As of December 31, 2024 and 2023, there was $160,000 and $40,000 accrued, but not paid.

    F-18

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO FINANCIAL STATEMENTS

NOTE
6 - COMMITMENTS AND CONTINGENCIES

Registration
Rights

The
holders of the Founder Shares, Private Placement Warrants and any 2021 Note Warrants or 2024 Note Warrants (and in each case, holders
of their underlying securities, as applicable) are entitled to registration rights pursuant to the Registration Rights Agreement, requiring
the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to the Class A Ordinary
Shares). The holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that
the Company register such securities. In addition, the holders have certain “piggyback” registration rights with respect
to registration statements filed subsequent to the consummation of a Business Combination and rights to require the Company to register
for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with
the filing of any such registration statements. On August 31, 2023, the Sponsor executed a joinder to the Registration Rights Agreement
in connection with the Sponsor Handover.

Underwriting
Agreement

In
connection with the Initial Public Offering, the underwriters were granted a 45-day option from the date of the prospectus to purchase
up to 3,000,000 additional Units to cover over-allotments, if any. On November