Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 137

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 137
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 to such investors to be $3,444,008 or on a weighted average of $4.59 per share as of October 19,
2023, which is estimated by taking into considerations 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.

In
connection with the 2024 Non-Redemption Agreements (as defined in Note 6), the Sponsor agreed to transfer a total of 412,498 Founder
Shares (representing the transfer for the first five months of the extension period) to the investors, promptly following the closing
of the Business Combination. Additionally, the Sponsor will transfer an additional 82,498 shares for each month of extension from December
2024 through April 2025. In total, up to 742,490 Founder Shares may be transferred to the investors. 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 July 15,
2024. As of December 31, 2024, the Company estimated the aggregate fair value of these 742,490 Founder Shares at $4,028,008, or approximately
$5.43 per share on a weighted-average basis. This estimate considers factors such as the probability of consummation of the Business
Combination, estimated concessions, and the cost of carrying charges to mitigate the investors’ exposure to fluctuations in the
price of the Founder Shares. The fair value of these Founder 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.

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, the Sponsors, affiliates of the Sponsors, or the Company’s
former officers and directors or current directors or officers may, but are not obligated to, loan the Company funds as may be required
(such loan from the Legacy Sponsor, its affiliates or the former officer and directors, the “2021 Working Capital Loan”,
and such loan from the Sponsor, its affiliates or the current directors or offices, the “