Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 35

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 35
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 reduce the resources available to us for our initial Business Combination and our issued and outstanding
Warrants, and the future dilution they potentially represent, may not be viewed favorably by certain target businesses. Either of these
factors may place us at a competitive disadvantage in successfully negotiating an initial Business Combination.

Employees

We
currently have two officers: Thomas Hennessy and Nick Geeza. These individuals are not obligated
to devote any specific number of hours to our matters, but they devote as much of their time as they deem necessary to our affairs until
we have completed our initial Business Combination. The amount of time they devote in any time period varies based on the stage of the
Business Combination process we are in. We do not intend to have any full-time employees prior to the completion of our initial Business
Combination.

Periodic
Reporting and Financial Information

We
have registered our Units, Public Shares and Public Warrants under the Exchange Act and have reporting obligations, including the requirement
that we file annual, quarterly and current reports with the SEC. In accordance with the requirements of the Exchange Act, our annual
reports, including this Report, contain financial statements audited and reported on by Withum, our independent registered public accountant.

We
will provide shareholders with audited financial statements of the prospective target business as part of the proxy solicitation materials
or tender offer documents sent to shareholders to assist them in assessing the target business, including the EEW Registration Statement.
In all likelihood, these financial statements will need to be prepared in accordance with, or reconciled to, GAAP, or IFRS, depending
on the circumstances, and the historical financial statements may be required to be audited in accordance with the standards of the PCAOB.
These financial statement requirements may limit the pool of potential target businesses we may conduct an initial Business Combination
with because some targets may be unable to provide such statements in time for us to disclose such statements in accordance with federal
proxy rules and complete our initial Business Combination within the prescribed time frame. We cannot assure our shareholders that any
particular target business identified by us as a potential Business Combination candidate will have financial statements prepared in
accordance with the requirements outlined above, or that the potential target business will be able to prepare its financial statements
in accordance with the requirements outlined above. To the extent that these requirements cannot be met, we may not be able to acquire
the proposed target business. While this may limit the pool of potential Business Combination candidates, we do not