Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 87

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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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 ability to close a Business Combination with a target
company, the specific impact is not readily determinable as of the date of the accompanying unaudited condensed financial statements.
The accompanying unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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 $1,403 and $27,720 of cash and no
cash equivalents as of March 31, 2025 and December 31, 2024, respectively.

Cash Held in Trust Account

At March 31, 2025 and December 31,
2024, the Company had $27,879,831 and
$27,637,300, respectively, in cash held in
the Trust Account. At March 31, 2025 and December 31, 2024, all of the assets held in the Trust Account were held in demand deposit accounts