Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 103

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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 of the extension of the Combination
Period from December 19, 2024 until April 19, 2025, as needed. The Founder Shares to be transferred to such investors pursuant to the
2024 Non-Redemption Agreements are held by the Sponsor and are to be transferred in connection with the closing of the Business Combination.
In connection with its entry into the 2024 Non-Redemption Agreements, the Company agreed that, in the event of the liquidation of the
Trust Account, it will only utilize up to $50,000 of funds from the accrued interest of the Trust Account to pay any dissolution expenses
if it does not effect a Business Combination prior to the end of the Combination Period. As of July 15, 2024, the Company estimated the
aggregate fair value of these 742,490 Founder Shares at $4,076,270, or approximately $5.49 per share on a weighted-average basis. As of
March 31, 2025 and December 31, 2024, the Company estimated the aggregate fair value of these 742,490 Founder Shares at $4,139,382 and
$4,028,008, or approximately $5.58 and $5.43 per share, respectively, on a weighted-average basis. The Company considered the estimated
probability of the consummation of a Business Combination, estimated concessions and estimated cost of carrying charges to eliminate the
investor’s exposure to changes in the price of their Class B Ordinary Shares. The fair value of the Class B Ordinary Shares was
determined to be an expense in accordance with SAB 5T and classified as a liability due to the variability in the number of Founder Shares
to be transferred, depending on the timing of the Business Combination.

NOTE 7 – DERIVATIVE WARRANT LIABILITIES

The Company issued 11,912,228
Warrants in connection with the Initial Public Offering and partial exercise of the Over-Allotment Option (including 6,666,667 Public
Warrants and 4,666,667 Private Placement Warrants at the time of Initial Public Offering, and additional 413,496 Public Warrants and 165,398
Private Placement Warrants at the time of the partial exercise of the Over-Allotment Option) in accordance with the guidance contained
in ASC 815-40. Such guidance provides that because the Warrants do not meet the criteria for equity treatment thereunder, each Warrant
was