Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 178

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 1
Chunk 178
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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, 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.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered
Sales of Equity Securities

None.

Use
of Proceeds

For
a description of the use of proceeds generated in our Initial Public Offering and Private Placement, see Part II, Item 2 of our Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2021, as filed with the SEC on November 23, 2021. There has been no
material change in the planned use of proceeds from our Initial Public Offering and Private Placement as described in the IPO Registration
Statement. The specific investments in our Trust Account may change from time to time.

On
October 19, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the
Trust Account in an interest-bearing demand deposit account at Citibank, N.A., with Continental continuing to act as trustee, until the
earlier of the consummation of our initial Business Combination or our liquidation. 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.

Item
3. Defaults Upon Senior Securities.

None.

Item
4. Mine Safety Disclosures.

Not
applicable.

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