Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 129

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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488 offset by interest earned on cash held
in the Trust Account of $323,575.

For
the three months ended June 30, 2024, we had net income of $475,460, consisting of $669,154 loss from operations, all of which were operating
expenses, including $60,000 of administrative expenses with related party, and a change in fair value of derivative warrant liabilities
of $382,382, offset by interest earned on cash held in the Trust Account of $639,184.

For
the six months ended June 30, 2024, we had net income of $362,270, consisting of $783,802 loss from operations, all of which were
operating expenses, including $60,000 of administrative expenses with related party, and a change in fair value of derivative
warrant liabilities of $125,079, offset by interest earned on cash held in the Trust Account of $1,271,151.

Liquidity,
Capital Resources and Going Concern

As
of June 30, 2025, we had $1,521 in our operating bank account and a working capital deficit of $2,699,343. To date, our liquidity needs
have been satisfied through (i) a payment of $25,000 from the Legacy Sponsor to cover certain expenses on our behalf in exchange for
the issuance of the Founder Shares, (ii) a loan of approximately $195,000 pursuant to the IPO Promissory Note issued to an affiliate
of the Legacy Sponsor, (iii) the net proceeds from the consummation of the Private Placement not held in the Trust Account, (iv) borrowings
under the 2021 Promissory Note, (v) the Polar Capital Investment and (vi) borrowings under the 2024 Promissory Note.

IPO
Promissory Note

Prior
to the closing of our Initial Public Offering, an affiliate of the Legacy Sponsor loaned us an aggregate of up to $250,000 under the
IPO Promissory Note. Such loans and advances were non-interest bearing and payable on the earlier of December 31, 2021 or the completion
of our Initial Public Offering. The loans of $195,000 were fully repaid upon the consummation of our Initial Public Offering on October
19, 2021. No additional borrowing is available under the IPO Promissory Note.

Working
Capital Loans

In
order to finance transaction costs in connection