Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 19

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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250,000 (the “IPO Promissory Note”), (iii) the net proceeds from
the consummation of the Private Placement not held in the Trust Account, (iv) the Polar Capital Investment (as defined in Note 5), and
(v) the Working Capital Loans (as defined in Note 5) pursuant to the 2021 Promissory Note and the 2024 Promissory Note (each as defined
in Note 5). The Company fully repaid the IPO Promissory Note on October 19, 2021. No additional borrowing is available under the IPO
Promissory Note (see Note 5).

As
of June 30, 2025, the Company had drawn $1,250,000 from the Polar Capital Investment that was fair valued at $227,273, $125,000 outstanding
from the 2021 Working Capital Loans (as defined below) and $1,532,122 outstanding from the 2024 Working Capital Loan (see Note 5).

Based
on the foregoing, Management believes that the Company may not have sufficient working capital to meet its anticipated obligations through
the earlier of the consummation of an initial Business Combination or one year from the date of the accompanying unaudited condensed
financial statements. Over this period, the Company will be using these funds for paying existing accounts payable, operating costs,
and completing our Business Combination.

In
connection with the Company’s assessment of going concern considerations in accordance with FASB ASC Subtopic 205-40 “Presentation
of Financial Statements – Going Concern,” the Company has until April 20, 2026 to consummate a Business Combination. It is
uncertain that the Company will be able to consummate a Business Combination by this time and the Company lacks the financial resources
it needs to sustain operations for a reasonable period of time, which is considered to be one year from the date of the accompanying
unaudited condensed financial statements. If a Business Combination is not consummated with the Combination Period, there will be a mandatory
liquidation and subsequent dissolution of the Company. The Company cannot provide any assurance that (i) new financing will be available
to it on commercially acceptable terms, if at all, or (ii) that its plans to consummate an initial Business Combination will be successful.
Management has determined that the liquidity condition and mandatory liquidation should a Business Combination not occur, and potential
subsequent dissolution raises substantial doubt about the Company’s ability to