Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 31

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 specific operational or financial considerations. Consistent with
this, certain portions of payroll have been allocated to the Company. As of the three and six months ended June 30, 2025, the Company
incurred and paid payroll and bonuses in the amount of $0 and $37,231, respectively. These amounts are included in the Company’s
general and administrative expenses on the accompanying unaudited condensed statements of operations. In connection with the employment
agreements, as of June 30, 2025, the Company paid $111,692 on the behalf of the Sponsor which is reflected as a due from sponsor on the
accompanying condensed balance sheets and will be paid at the consummation of a business combination.

    13

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE
30, 2025

In
connection with the Non-Redemption Agreements (as defined in Note 6), the Sponsor agreed 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). The Company estimated the aggregate fair value of the 749,810
Class B Ordinary Shares attributable 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 those 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