Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 59

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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ation. As a result, following the liquidation of investments
in the Trust Account, the remaining proceeds from the Initial Public Offering and Private Placement are no longer invested in U.S. government
securities or money market funds invested in U.S. government securities.

Going
Concern

Based
on the foregoing, we believe that we may not have sufficient working capital to meet our needs through the consummation of a Business
Combination. Over this period, we will be using these funds for paying existing accounts payable, operating costs, performing due diligence
on prospective target businesses with which to consummate a Business Combination, paying for travel expenditures and structuring, negotiating
and consummating the Business Combination.

In
connection with our assessment of going concern considerations in accordance with FASB ASU Topic 2014-15, “Disclosure of Uncertainties
about an Entity’s Ability to Continue as a Going Concern,” we have until April 19, 2026 to consummate a Business Combination,
unless our Combination Period is further extended. It is uncertain that we will be able to consummate a Business Combination by this
time and lack the financial resources to sustain operations for a reasonable period of time, which is considered to be one year from
the issuance date of the financial statements contained elsewhere in this Report. If a Business Combination is not consummated by this
date, there will be a mandatory liquidation and subsequent dissolution of our Company. We cannot provide any assurance that (i) new financing
will be available to us on commercially acceptable terms, if at all, or (ii) that our plans to consummate an initial Business Combination
will be successful. We have determined that the liquidity condition and mandatory liquidation should a Business Combination not occur,
and potential subsequent dissolution raises substantial doubt about our ability to continue as a going concern. The financial statements
and notes thereto contained elsewhere in this Report do not include any adjustments that might result from our inability to continue
as a going concern.

Contractual
Obligations

Administrative
Services Agreement

Commencing
on October 14, 2021, and until completion of our initial Business Combination or liquidation, we may reimburse our Sponsor up to an aggregate
amount of $10,000 per month for office space and secretarial and administrative support pursuant to the Administrative Services Agreement.
Per the Administrative Services Agreement, it is at our option as to whether or not to pay this administrative fee. Under the Administrative
Services Agreement, there was an aggregate