Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 132

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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 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 successful. We have determined that the liquidity condition and mandatory liquidation should a Business Combination not occur,
and potential subsequent dissolution raises substantial doubt about our ability to continue as a going concern. The financial statements
and notes thereto contained elsewhere in this Report do not include any adjustments that might result from our inability to continue
as a going concern.

Contractual
Obligations

Administrative
Services Agreement

Commencing
on October 14, 2021, and until completion of the Company’s initial Business Combination or liquidation, the Company may reimburse
the Sponsors up to an aggregate amount of $10,000 per month for office space and secretarial and administrative support pursuant to the
Administrative Services Agreement. Per the Administrative Services Agreement, it is at the Company’s option as to whether or not
to pay this administrative fee. The Legacy Sponsor assigned the Administrative Services Agreement to the Sponsor on August 31, 2023,
in connection with the Sponsor Handover. For the three and six months ended June 30, 2025, the total administrative expenses were $30,000
and $60,000, respectively. There was $30,000 and $60