Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 166

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 166
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 participation of our Management, including our Certifying Officers, we carried out an evaluation of the
effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under
the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were effective
as of the end of the quarterly period ended September 30, 2025.

We
do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and
procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the
disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there
are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure
controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all
our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain
assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions.

Changes
in Internal Control over Financial Reporting

There
have been no changes to our internal control over financial reporting during the quarterly period ended September 30, 2025 that materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

28

PART
II. OTHER INFORMATION

Item
1. Legal Proceedings.

To
the knowledge of our Management, there is no material litigation currently pending or contemplated against us, any of our officers or
directors in their capacity as such or against any of our property.

Item
1A. Risk Factors.

As
a smaller reporting company under Rule 12b-2 of the Exchange Act, we are not required to include risk factors in this Report. For additional
risks relating to our operations, see the section titled “Risk Factors” contained in our (i) Annual Report as filed
with the SEC on March 25, 2025 and (ii) Definitive Proxy Statement on Schedule 14A, as filed with the SEC on March 25, 2025. Any of these
factors could result in a significant or material adverse effect on our results of operations or financial condition.