Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 157

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 157
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 was fair valued at $227,273 and $90,909, respectively. For more information on
the Polar Subscription Agreement and Polar Capital Investment, see “Investor Subscription Agreement” below.

Demand
Deposit Account Transfer

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.

Going
Concern

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