Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 147

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 147
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 accounting and auditing compliance), as well as for due diligence
expenses.

For
the three months ended March 31, 2025, we had a net loss of $483,071, consisting of $490,342 in loss from operations, of which
$460,342 were operating expenses, including $30,000 of administrative expenses with related party, offset by a change in fair value
of derivative warrant liabilities of $123,886, change in fair value of non-redemption liability of $111,374 and interest earned on
cash held in the Trust Account of $242,531 .

For
the three months ended March 31, 2024, we had a net loss of $113,190, consisting of $237,696 in loss from operations, all of which were
operating expenses, including $30,000 of administrative expenses with related party, offset by a change in fair value of derivative warrant
liabilities of $507,461, and interest earned on cash held in the Trust Account of $631,967.

Factors
That May Adversely Affect our Results of Operations

Our
results of operations and our ability to complete an initial Business Combination may be adversely affected by various factors that could
cause economic uncertainty and volatility in the financial markets, many of which are beyond our control. Our results of operations and
our ability to consummate a Business Combination could be impacted by, among other things, downturns in the financial markets or in economic
conditions, increases in oil prices, inflation, fluctuations in interest rates, increases in tariffs, supply chain disruptions, declines
in consumer confidence and spending, public health considerations, and geopolitical instability, such as the military conflicts in Ukraine
and the Middle East. We cannot at this time predict the likelihood of one or more of the above events, their duration or magnitude or
the extent to which they may negatively impact our business and our ability to complete an initial Business Combination.

Liquidity,
Capital Resources and Going Concern

As
of March 31, 2025, we had $1,403 in our operating bank account and a working capital deficit of $2,572,223. 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