Tue, Mar 25, 10:11 AM (32 days ago)
### Summary of Compass Digital Acquisition Corp. (Ticker: CDAQ) **Financial Performance:** - **Revenue:** Not applicable as the company has not generated any operating revenue. - **Net Income:** The company reported a net loss of $3,545,486 for the year ended December 31, 2024, compared to a net income of $4,386,322 in 2023. - **Operating Expenses:** Operating expenses for 2024 were $1,794,928, including $120,000 of administrative expenses with related parties and $4,028,008 in non-redemption expenses. **Strategic Overview:** - **Business Model:** Compass Digital Acquisition Corp. is a blank check company incorporated in the Cayman Islands, formed for the purpose of effectuating a business combination. - **Initial Public Offering (IPO):** The company completed its IPO on October 19, 2021, raising $200 million from the sale of 20,000,000 units, each consisting of one Class A Ordinary Share and one-third of one Public Warrant. - **Trust Account:** $200 million from the IPO proceeds was placed in a trust account, initially invested in U.S. government securities or money market funds. On October 19, 2023, the investments were liquidated, and the funds were moved to an interest-bearing demand deposit account. **Future Outlook:** - **Business Combination:** The company is seeking to complete a business combination with a target company. As of December 31, 2024, the company had not yet identified a target. - **Redemptions:** The company has experienced significant redemptions of public shares, with 18,759,003 public shares redeemed, reducing the number of outstanding public shares to 2,481,485 and the total amount held in the trust account to approximately $27,637,300. **Risk Factors:** - **Liquidity and Going Concern:** The company faces substantial doubt about its ability to continue as a going concern due to its liquidity condition and the mandatory liquidation if a business combination is not completed by April 19, 2025. - **Market Position Changes:** The company's public shares were delisted from Nasdaq on March 5, 2025, and are now quoted on the OTC Pink Market. **Financial Condition:** - **Cash and Cash Equivalents:** As of December 31, 2024, the company had $27,720 in cash and a working capital deficit of $2,081,881. - **Debt:** The company has outstanding loans under the 2021 Promissory Note and the 2024 Promissory Note, totaling $1,240,000 and $1,115,000, respectively. **Market Position Changes:** - **Delisting:** The company's securities were delisted from Nasdaq on March 5, 2025, and are now quoted on the OTC Pink Market. **Additional Information:** - **Sponsor Handover:** On August 31, 2023, the company completed a sponsor handover, transferring assets and responsibilities to a new sponsor. - **Founder Share Conversions:** The company has converted founder shares into Class A Ordinary Shares, subject to certain restrictions. **Note:** The company's financial statements and notes provide additional details on its financial condition, operating results, and risk factors.