Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 651

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 3
Chunk 651
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 contained elsewhere in this Report.

Class
A Ordinary Shares Subject to Redemption

We
account for our Ordinary Shares subject to possible redemption in accordance with the guidance in ASC 480. Ordinary Shares subject to
mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable Ordinary
Shares (including Ordinary Shares that feature redemption rights that are either within the control of the holder or subject to redemption
upon the occurrence of uncertain events not solely within our control) are classified as temporary equity. At all other times, Ordinary
Shares are classified as shareholders’ deficit. Our Ordinary Shares feature certain redemption rights that are considered to be
outside of our control and subject to the occurrence of uncertain future events. Accordingly, Ordinary Shares subject to possible redemption
are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the balance sheets of the
financial statements contained elsewhere in this Report.

    Item
    7A.
    Quantitative
    and Qualitative Disclosures about Market Risk.

We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise
required under this Item.

    Item
    8.
    Financial
    Statements and Supplementary Data.

Reference
is made to pages F-1 through F-24 comprising a portion of this Report, which are incorporated herein by reference.

    Item
    9.
    Changes
    in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

    Item
    9A.
    Controls
    and Procedures.

Evaluation
of Disclosure Controls and Procedures

Disclosure
controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports
filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information
required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to Management, including
our Chief Executive Officer and Chief Financial Officer (together, the “Certifying Officers”), or persons performing similar
functions, as appropriate, to allow timely decisions regarding required disclosure.

38

Under
the supervision and with the participation of our Management, including our Certifying Officers, we carried out an evaluation of the
effectiveness of the design and operation of our disclosure controls and procedures as defined