Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 165

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 3
Chunk 165
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28

PART
II. OTHER INFORMATION

Item
1. Legal Proceedings.

To
the knowledge of our Management, there is no material litigation currently pending or contemplated against us, any of our officers or
directors in their capacity as such or against any of our property.

Item
1A. Risk Factors.

As
a smaller reporting company under Rule 12b-2 of the Exchange Act, we are not required to include risk factors in this Report. For additional
risks relating to our operations, other than as set forth below, see the section titled “Risk Factors” contained in
our (i) Annual Report as filed with the SEC on March 25, 2025 and (ii) Definitive Proxy Statement on Schedule 14A, as filed with the
SEC on March 25, 2025. Any of these factors could result in a significant or material adverse effect on our results of operations or
financial condition. Additional risks could arise that may also affect our business or ability to consummate an initial Business Combination.
We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.

Changes
in international trade policies, tariffs and treaties affecting imports and exports may have a material adverse effect on our
ability to close an initial Business Combination target or the performance or business prospects of a post-Business Combination
company.

There
have recently been significant changes to international trade policies and tariffs affecting imports and exports. Any significant increases
in tariffs on goods or materials or other changes in trade policy could negatively affect our ability
to complete our initial Business Combination.

Recently,
the U.S. has implemented a range of new tariffs and increases to existing tariffs. In response to the tariffs announced by the
U.S., other countries have imposed, are considering imposing, and may in the future impose new or increased tariffs on certain exports
from the United States. There is currently significant uncertainty about the future relationship between the United States and other
countries with respect to trade policies, taxes, government regulations and tariffs. and we cannot predict whether, and to what
extent, current tariffs will continue or trade policies will change in the future.

Tariffs,
or the threat of tariffs or increased tariffs, could have a significant negative impact on certain businesses (either due to domestic
businesses’ reliance on imported goods or dependence on access to foreign markets, or foreign businesses’ reliance on sales
into the United States). In addition, retaliatory tariffs could have