Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 250

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 250
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 and other policies with other countries, terrorist acts, security operations and catastrophic events such
as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics) may contribute to increased market volatility and economic
uncertainties or deterioration in the United States and worldwide. These market volatilities could adversely affect the Company’s
ability to complete a Business Combination. In response to the conflict between nations, the United States and other countries have imposed
sanctions or other restrictive actions against certain countries. Any of the above factors, including sanctions, export controls, tariffs,
trade wars and other governmental actions, could have a material adverse effect on the Company’s ability to complete a Business
Combination and the value of the Company’s securities.

Management
continues to evaluate the impact of these types of risks on the industry and has concluded that while it is reasonably possible that
these types of risks could have a negative effect on the Company’s financial position, results of its operations and/or search
for a target company, the specific impact is not readily determinable as of the date of the accompanying financial statements. The accompanying
financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Use
of Estimates

The
preparation of the accompanying 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
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 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.

    F-12

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO FINANCIAL STATEMENTS

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 $27,720 and $44,046 of cash and no cash equivalents as of December 31, 2024 and 2023, respectively.

Cash
Held in Trust Account

At
December 31, 2024 and 2023, the Company had $27,