Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 89

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 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 continue as a going concern. The accompanying unaudited
condensed financial statements do not include any adjustments that might result from the Company’s inability to continue as a going
concern.

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
accompanying unaudited condensed financial statements are presented in conformity with accounting principles generally accepted in the
United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q
and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared
in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting.
Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results
of operations, or cash flows. In the opinion of Management, the accompanying unaudited condensed financial statements reflect all adjustments,
which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented.
Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected
through December 31, 2025.

The
accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2024 as filed with the SEC on March 25, 2025.

Emerging
Growth Company

The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012 (the “JOBS Act”), and it may take