Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 525

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 525
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, accounting and auditing compliance), as well as for due diligence
expenses.

For
the year ended December 31, 2024, we had a net loss of $3,545,486, consisting of $5,942,936 loss from operations (of which $1,794,928
of operating expenses, including $120,000 of administrative expenses with related party, $4,028,008 in non-redemption expense), offset
by change in fair value of derivative warrant liabilities of $469,341, and interest earned on cash held in the Trust Account of $1,928,109.

For
the year ended December 31, 2023, we had net income of $4,386,322, consisting of $5,490,575 loss from operations, all consisting of operating
expenses, including $120,000 administrative expense with related party and a non-redemption expense of $3,444,008, offset by a change
in fair value of derivative warrant liabilities of $364,515, interest earned on cash held in the Trust Account of $8,914,159, gain on
settlement of professional legal fees of $351,409 and gain on settlement of deferred underwriting fees of $246,814.

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 December 31, 2024, we had $27,720 in our operating bank account and working capital deficit of $2,081,881. To date, our liquidity
needs have been satisfied through (i) a payment of $25,000 from the Legacy Sponsor