Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 89

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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5 and December 31, 2024. The Company is currently not
aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company is considered to be an exempted Cayman
Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing
requirements in the Cayman Islands or the United States. Therefore, the Company’s tax provision was zero for the periods presented.

Offering Costs Associated with the Initial Public
Offering

Offering costs consisted of legal, accounting, underwriting
fees and other costs incurred through the accompanying unaudited condensed balance sheet dates that are directly related to the Initial
Public Offering. Upon the completion of the Initial Public Offering, the offering costs were allocated using the relative fair values
of the Class A Ordinary Shares and Warrants. The costs allocated to Warrants were recognized in other expenses, and those related to the
Class A Ordinary Shares were charged against the carrying value of the Class A Ordinary Shares. The Company complies with the requirements
of FASB ASC Topic 340-10-S99-1, “Other Assets and Deferred Costs.”

Net Loss Per Ordinary Share

The Company complies with
the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of Ordinary
Shares: Class A Ordinary Shares and Class B Ordinary Shares. Net income (loss) is shared pro rata between the two classes of Ordinary Shares. Net
loss per Ordinary Share is calculated by dividing net loss by the weighted average number of Ordinary Shares outstanding for the respective
period. As of March 31, 2025 and 2024, the inclusion of financial instruments in the calculation of earnings per share is contingent on
a future event. As a result, diluted net loss per Ordinary Share is the same as basic net loss per Ordinary Share for the periods presented.
Accretion associated with the redeemable Class A Ordinary Shares is excluded from earnings per share as the redemption value approximates
fair value.

The following table presents a reconciliation of the
numerator and denominator used to compute basic and diluted net loss per share for each class of Ordinary Shares:

SUMMARY OF RECONCILIATION OF
NUMERATOR AND DENOMINATOR USED TO COMPUTE BASIC AND DILUTED NET LOSS PER SHARE

    For The Three
                                                                                Months Ended
                                                                                March 31, 2025