Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 92

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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 standard. This may make comparison of the Company’s financial statements with another public company,
which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period
difficult or impossible because of the potential differences in accounting standards used.

    9

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

Risks
and Uncertainties

The
Company’s ability to complete an initial Business Combination may be adversely affected by various factors, many of which are beyond
the Company’s control. The Company’s ability to consummate an initial Business Combination could be impacted by, among other
things, 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,