Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 94

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 94
---
 accrued interest and penalties related to unrecognized tax benefits,
if any, as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September
30, 2025 and December 31, 2024. The Company is currently not aware of any issues under review that could result in significant payments,
accruals or material deviation from its position.

    10

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

The
Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently
not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. Therefore, the Company’s
tax provision was zero for the periods presented.

Offering
Costs Associated with the Initial Public Offering

Offering
costs consisted of legal, accounting, underwriting fees and other costs incurred through the accompanying unaudited condensed balance
sheet dates that are directly related to the Initial Public Offering. Upon the completion of the Initial Public Offering, the offering
costs were allocated using the relative fair values of the Class A Ordinary Shares and Warrants. The costs allocated to Warrants were
recognized in other expenses, and those related to the Class A Ordinary Shares were charged against the carrying value of the Class A
Ordinary Shares. The Company complies with the requirements of FASB ASC Topic 340-10-S99-1, “Other Assets and Deferred Costs.”

Net
Loss Per Ordinary Share

The
Company complies with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company
has two classes of Ordinary Shares: Class A Ordinary Shares and Class B Ordinary Shares. Net loss is shared pro rata between the two
classes of Ordinary Shares. Net (loss) per Ordinary Share is calculated by dividing net loss by the weighted average number of Ordinary
Shares outstanding for the respective period. As of September 30, 2025 and 2024, the inclusion of financial instruments in the calculation
of earnings per share is contingent on a future event. As a result, diluted net loss per Ordinary Share is the same as basic net loss
per Ordinary Share for the periods presented. Accretion associated with the redeemable Class A Ordinary Shares is excluded from earnings
per share as the redemption value approx