Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 156

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 156
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 to us of up to $1,500,000. As of June 30, 2025 and December 31, 2024, we had drawn $1,250,000 and $500,000
under the Polar Capital Investment, respectively, that was fair valued at $227,273 and $90,909, respectively. For more information on
the Polar Subscription Agreement and Polar Capital Investment, see “Investor Subscription Agreement” below.

Demand
Deposit Account Transfer

On
October 19, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the
Trust Account in an interest-bearing demand deposit account at Citibank, N.A., with Continental continuing to act as trustee, until the
earlier of the consummation of our initial Business Combination or our liquidation. As a result, following the liquidation of investments
in the Trust Account, the remaining proceeds from the Initial Public Offering and Private Placement are no longer invested in U.S. government
securities or money market funds invested in U.S. government securities.

Going
Concern

Based
on the foregoing, we believe that we may not have sufficient working capital to meet our needs through the consummation of a Business
Combination. Over this period, we will be using these funds for paying existing accounts payable, operating costs, performing due diligence
on prospective target businesses with which to consummate a Business Combination, paying for travel expenditures and structuring, negotiating
and consummating the Business Combination.

In
connection with our assessment of going concern considerations in accordance with FASB ASU Topic 2014-15, “Disclosure of Uncertainties
about an Entity’s Ability to Continue as a Going Concern,” we have until April 20, 2026 to consummate a Business Combination,
unless our Combination Period is further extended. It is uncertain that we will be able to consummate a Business Combination by this
time and lack the financial resources to sustain operations for a reasonable period of time, which is considered to be one year from
the issuance date of the financial statements contained elsewhere in this Report. If a Business Combination is not consummated by this
date, there will be a mandatory liquidation and subsequent dissolution of our Company. We cannot provide any assurance that (i) new financing
will be available to us on commercially acceptable terms, if at all, or (ii) that our plans to consummate an initial Business Combination
will be