Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 90

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 90
---
 was fair valued at $227,273, $125,000
outstanding from the 2021 Working Capital Loans (as defined below) and $1,635,872 outstanding from the 2024 Working Capital Loan (see
Note 5).

Based
on the foregoing, Management believes that the Company may not have sufficient working capital to meet its anticipated obligations through
the earlier of the consummation of an initial Business Combination or one year from the date of the accompanying unaudited condensed
financial statements. Over this period, the Company will be using these funds for paying existing accounts payable, operating costs,
and completing our 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 20, 2026 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
unaudited condensed 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 unaudited
condensed financial statements do not include any adjustments that might result from the Company’s inability to continue as a going
concern.

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
accompanying unaudited condensed financial statements are presented in conformity with accounting principles generally accepted in the
United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q
and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared
in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting.
Accordingly, they do