Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 60

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 60
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4, we had $27,720 in our operating bank account and working capital deficit of $2,081,881. To date, our liquidity
needs have been satisfied through (i) a payment of $25,000 from the Legacy Sponsor to cover certain expenses on our behalf in exchange
for the issuance of the Founder Shares, (ii) a loan of approximately $195,000 pursuant to the IPO Promissory Note issued to an affiliate
of the Legacy Sponsor, (iii) the net proceeds from the consummation of the Private Placement not held in the Trust Account, (iv) borrowings
under the 2021 Promissory Note, (v) the Polar Capital Investment and (vi) borrowings under the 2024 Promissory Note.

IPO
Promissory Note

Prior
to the closing of our Initial Public Offering, an affiliate of the Legacy Sponsor loaned us an aggregate of up to $250,000 under the
IPO Promissory Note. Such loans and advances were non-interest bearing and payable on the earlier of December 31, 2021 or the completion
of our Initial Public Offering. The loans of $195,000 were fully repaid upon the consummation of our Initial Public Offering on October
19, 2021. No additional borrowing is available under the IPO Promissory Note.

32

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, our Initial Shareholders,
Sponsors or an affiliate of the Initial Shareholders or Sponsors, or certain of our Prior Directors and Officers or current directors
and officers may, but are not obligated to, provide us Working Capital Loans. Such Working Capital Loans would be evidenced by
promissory notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s
discretion, up to $1,500,000 of notes may be converted upon consummation of a Business Combination into warrants at a price of $1.50
per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that a Business Combination does not close,
we may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust
Account would be used to repay the Working Capital Loans.

2021
Promissory Note

On
December 30, 2021, there was a written agreement put in place