Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 161

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 161
---
 to transfer to such investors an aggregate of 749,810 Founder Shares held by the Sponsor promptly following the closing of the
Business Combination (but no later than two business days after the satisfaction of the requisite conditions to such transfer).

We
estimated the aggregate fair value of the 749,810 Founder Shares attributable to such investors pursuant to the 2023 Non-Redemption Agreements
to be $3,444,008 or on a weighted average of $4.59 per share, which is estimated by taking into consideration the estimated probability
of the consummation of a Business Combination, estimated concessions and estimated cost of carrying charges to eliminate the investors’
exposure to changes in the price of their Founder Shares. The fair value of the Founder Shares was determined to be an expense in accordance
with SEC Staff Accounting Bulletin Topic 5T, “Accounting for Expenses or Liabilities Paid by Principal Stockholder(s)” (the
“SAB 5T”).

Between
July 15, 2024 and July 18, 2024, the Company entered into agreements with the Sponsor and unaffiliated third-party investors exchange
for such investors agreeing not to redeem an aggregate of 2,475,000 Public Shares in connection with the vote to approve the 2024 Extension
Amendment Proposal at the 2024 EGM. In exchange for these commitments not to redeem such Public Shares, the Sponsor agreed to transfer
to such investors an aggregate of (i) 412,498 Founder Shares for the first five (5) months of the extension of the Combination Period
from July 19, 2024 to December 19, 2024 and (ii) 82,498 Founder Shares per month, for each month 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