Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 645

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 3
Chunk 645
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 the
Initial Public Offering, or $4,000,000 (or $4,600,000 if the Over-Allotment Option was exercised in full) pursuant to the Underwriting Agreement. In addition, the
underwriters were entitled to a deferred fee of three and half percent (3.50%) of the gross proceeds of the Initial Public Offering,
or $7,000,000 (or $8,050,000 if the Over-Allotment Option was exercised in full). The deferred fees were to become payable to the
underwriters from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the
terms of the Underwriting Agreement.

On
August 11, 2023 and August 14, 2023, we received formal confirmations from Citigroup
Global Markets Inc. and J.P. Morgan Securities LLC, informing us of their decisions to waive any
entitlement they may have to their deferred underwriting fees payable held in the Trust Account with respect to any Business Combination.
Out of the release of $7,434,171 deferred underwriting fees, $7,187,357
was charged against accumulated deficit in the balance sheets as of December 31, 2023 and $246,814 is reflected as a gain on settlement
of deferred underwriting fees in the statements of operations contained elsewhere in this Report.

Financial
Advisory Agreements

We
entered into two financial advisory agreements in September and December 2022, respectively, with financial advisors in connection with
our Business Combinations. We agreed to pay success fees for signed letters of intent and any successful acquisition. Success fees range
from $50,000 to $1,250,000. We also agreed to reimburse the financial advisors for all reasonable and documented expenses, subject to
limitations and prior written consent of us. Both agreements were terminated in August 2023, and no expense was incurred or outstanding
as of December 31, 2024.

Investor
Subscription Agreement

On
September 6, 2023, we entered into the Polar Subscription Agreement with the Sponsor and Polar, pursuant to which Polar agreed to fund
up to $1,500,000 to us, subject to certain funding milestones. Once we have reached a defined milestone, upon on at least five (5) calendar
days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment, a Polar Capital Investment,
in order to meet the