Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 119

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 119
---
 ASC 815-40, and are presented within warrant
liabilities on the accompanying balance sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis,
with changes in fair value presented within change in fair value of warrant liabilities in the accompanying unaudited condensed statements
of operations.

Upon
consummation of the Initial Public Offering on October 19, 2021, the Warrants were classified as Level 3 due to unobservable inputs used
in the initial valuation. On December 9, 2021, the Public Warrants surpassed the 52-day threshold waiting period to be publicly traded
in accordance with the IPO Registration Statement. Once publicly traded, the observable input qualifies the liability for treatment as
a Level 1 liability. The estimated fair value of the Public Warrants was transferred from a Level 1 measurement to a Level 2 measurement
due to lack of trading activity as of December 31, 2024 and 2023. As the transfer of Private Placement Warrants to anyone outside of
a small group of individuals who are permitted transferees would result in the Private Placement Warrants having substantially the same
terms as the Public Warrants, the Company determined that the fair value of each Private Placement Warrant is equivalent to that of each
Public Warrant, with an insignificant adjustment for short-term marketability restrictions. As such, the Private Placement Warrants were
classified as Level 2 as it references the price of Public Warrants.

The
following table presents the changes in the fair value of warrant liabilities:

 SCHEDULE OF CHANGES IN FAIR VALUE OF WARRANT LIABILITIES

    Private Placement  
    Public  
    Warrant Liabilities 

    Fair value as of December 31, 2024 
    $48,321  
    $70,802  
    $119,123 
  
    Change in fair value (1) 
     50,253  
     73,633  
     123,886 
  
    Fair value as of March 31, 2025 
    $98,574  
    $144,435  
    $243,009 
  
    Change in fair value (1) 
     143,029  
     209,573  
     352,602 
  
    Fair value as of June 30, 2025 
    $241,603  
    $354,008  
    $595,611