Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 22

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the accompanying unaudited condensed financial statements,
which Management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly,
the actual results could differ significantly from those estimates.

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $1,521 and $27,720 of cash and no cash equivalents as of June 30, 2025 and December 31, 2024, respectively.

Cash
Held in Trust Account

At
June 30, 2025 and December 31, 2024, the Company had $1,272,260 and $27,637,300, respectively, in cash held in the Trust Account. At
June 30, 2025 and December 31, 2024, all of the assets held in the Trust Account were held in demand deposit accounts.

Class
A Ordinary Shares Subject to Redemption

The
Company accounts for its Ordinary Shares subject to possible redemption in accordance with the guidance in ASC 480. Ordinary Shares subject
to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable Ordinary
Shares (including Ordinary Shares that feature redemption rights that are either within the control of the holder or subject to redemption
upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other
times, Ordinary Shares are classified as shareholders’ deficit. The Ordinary Shares feature certain redemption rights that are
considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, Ordinary
Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit
section of the accompanying condensed balance sheets. For the three and six months ended June 30, 2025 and 2024, the Company recorded
accretion on the Class A Ordinary Shares of $81,044 and $323,575, and $639,184 and $1,271,151, respectively, to redemption value related
to the interest in the Trust Account.

Income
Taxes

The
Company complies with the accounting and reporting requirements of FASB ASC Topic 740, “Income Taxes” (“ASC 740”),