Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 85

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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mate 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 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 months ended March 31, 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 “JO