Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 477

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 477
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 negotiating and consummating the Business Combination.

In
connection with the Company’s assessment of going concern considerations in accordance with FASB ASC Subtopic 205-40 “Presentation
of Financial Statements – Going Concern,” the Company has until April 19, 2025 if all remaining monthly extensions pursuant
to the 2024 Extension Amendment Proposal are used, to consummate a Business Combination. It is uncertain that the Company will be able
to consummate a Business Combination by this time and the Company lacks the financial resources it needs to sustain operations for a
reasonable period of time, which is considered to be one year from the date of the accompanying financial statements. If a Business Combination
is not consummated with the Combination Period, there will be a mandatory liquidation and subsequent dissolution of the Company. The
Company cannot provide any assurance that (i) new financing will be available to it on commercially acceptable terms, if at all, or (ii)
that its plans to consummate an initial Business Combination will be successful. Management has determined that the liquidity condition
and mandatory liquidation should a Business Combination not occur, and potential subsequent dissolution raises substantial doubt about
the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that
might result from the Company’s inability to continue as a going concern.

    F-11

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO FINANCIAL STATEMENTS

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America
(“GAAP”) and pursuant to the rules and regulations of the SEC.

Emerging
Growth Company

The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required
to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of
2022, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from
the requirements of holding a nonbinding advisory vote on executive compensation and