Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 23

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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, changes in laws or regulations, downturns in the financial markets or in economic conditions, inflation, fluctuations in interest
rates, increases in tariffs, supply chain disruptions, declines in consumer confidence and spending, public health considerations, and
geopolitical instability, such as the military conflicts in Ukraine and the Middle East. The Company cannot at this time predict the
likelihood of one or more of the above events, their duration or magnitude or the extent to which they may negatively impact the Company’s
ability to complete an initial Business Combination.

Use
of Estimates

The
preparation of the accompanying unaudited condensed financial statements in conformity with GAAP requires Management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the accompanying unaudited condensed financial statements and the reported amounts of revenues and expenses during the reporting
period.

Making
estimates requires Management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the accompanying unaudited condensed financial statements,
which Management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly,
the actual results could differ significantly from those estimates.

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $721 and $27,720 of cash and no cash equivalents as of September 30, 2025 and December 31, 2024, respectively.

Cash
Held in Trust Account

At
September 30, 2025 and December 31, 2024, the Company had $1,283,558 and $27,637,300, respectively, in cash held in the Trust Account.
At September 30, 2025 and December 31, 2024, all of the assets held in the Trust Account were held in demand deposit accounts.

Class
A Ordinary Shares Subject to Redemption

The
Company accounts for its Ordinary Shares subject to possible redemption in accordance with the guidance in ASC 480. Ordinary Shares subject
to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable Ordinary
Shares (including Ordinary Shares that feature redemption rights that are either within the control of the holder or subject to redemption
upon the occurrence of uncertain events not solely