Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 161

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 161
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As
a smaller reporting company under Rule 12b-2 of the Exchange Act, we are not required to include risk factors in this Report. However,
the following is a partial list of material risks, uncertainties and other factors that could have a material effect on us and our operations:

    ●
    we are a blank check company
    and an early-stage company with no revenue or basis to evaluate our ability to select a suitable business target;

    ●
    we may not be able to select
    an appropriate target business or businesses and complete our initial Business Combination, including the EEW Business Combination,
    within the Combination Period; 

    ●
    our expectations around
    the performance of a prospective target business or businesses, such as EEW, may not be realized; 

    ●
    we may not be successful
    in retaining or recruiting required officers, key employees or directors following our initial Business Combination, including the
    EEW Business Combination; 

    ●
    our officers and directors
    may have difficulty allocating their time between our Company and other businesses and may potentially have conflicts of interest
    with our business or in approving our initial Business Combination;

    ●
    we may not be able to obtain
    additional financing to complete our initial Business Combination or reduce the number of Public Shareholders requesting redemption;

    ●
    we may issue our Ordinary Shares
    to investors in connection with our initial Business Combination at a price that is less than the prevailing market price of our
    Ordinary Shares at that time;

    ●
    our
    shareholders may not be given the opportunity to choose the initial Business Combination target or to vote on the initial Business
    Combination;

    ●
    Trust Account funds may
    not be protected against third party claims or bankruptcy;

    ●
    an active market
    for our public securities may not continue and our shareholders may have limited liquidity and trading;

    ●
    our financial performance
    following a Business Combination with an entity may be negatively affected by their lack of an established record of revenue, cash
    flows and experienced management;

    ●
    there may be more competition
    to find an attractive target for an initial Business Combination, which could increase the costs associated with completing our initial
    Business Combination and may result in our inability to find a suitable target;

    ●
    changes in the market for
    directors’ and officers’ liability insurance could make it more difficult and more expensive for us to negotiate and complete an