Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 128

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 128
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 shall acquire all of EEW Ordinary
Shares from the Sellers in exchange for newly issued ordinary shares of Pubco, par value $0.0001 per share, all upon the terms and subject
to the conditions set forth in the Business Combination Agreement and in accordance with the applicable provisions of the Companies Act
and the laws of England and Wales, and any outstanding convertible securities of EEW will be terminated; and (c) as a result of the Transactions,
our Company and EEW each will become a wholly-owned subsidiary of Pubco, and Pubco will become a publicly traded company upon the Closing.

For
a full description of the Business Combination Agreement and the proposed Transactions, please see Item 1. “Business”.

23

Results
of Operations

Our
entire activity from inception up to June 30, 2025, relates to our formation, Initial Public Offering, the search for a target business
and the consummation of an initial Business Combination, such as the Transactions with EEW. We will not be generating any operating revenues
until the closing and completion of our initial Business Combination, at the earliest. We generate non-operating income in the form of
interest income on cash and cash equivalents or investments from the proceeds derived from the Initial Public Offering and the Private
Placement, which are partially offset by operating expenses and related party administrative expenses. We incur increased expenses as
a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence
expenses.

For
the three months ended June 30, 2025, we had a net loss of $414,138, consisting of $127,120 in loss from operations, of which $97,120
were operating expenses, including $30,000 of administrative expenses with related party and a change in fair value of non-redemption
liability of $15,640, and a change in fair value of derivative warrant liabilities of $352,602 offset by interest earned on cash held
in the Trust Account of $81,044.

For
the six months ended June 30, 2025, we had a net loss of $897,389, consisting of $617,462 in loss from operations, of which $557,462
were operating expenses, including $60,000 of administrative expenses with related party and a change in fair value of non-redemption
liability of $127,014, and a change in fair value of derivative warrant liabilities of $476,