Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 89

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 from EEW purporting to terminate the Business Combination
Agreement pursuant to Sections 10.1(b) and 10.1(d) thereof. On November 6, 2025, the Company sent a written response to EEW disputing
such termination, asserting, among other things, that the representations, warranties and covenants of the Company set forth in the Business
Combination Agreement purported by EEW in the Notice to have been breached by the Company either were not breached at all or were not
breached at a level giving rise to a termination right, and that, in any event, EEW does not have the right to terminate the Business
Combination Agreement due to EEW’s previous and continuing breaches of certain key covenants of the Business Combination Agreement.
Consequently, the Company believes that EEW’s purported termination of the Business Combination Agreement is invalid under the
terms of the Business Combination Agreement.

    8

COMPASS
DIGITAL ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

Liquidity
and Going Concern

As
of September 30, 2025, the Company had $721 in its operating bank accounts and a working capital deficit of $2,891,890.

To
date, the Company’s liquidity needs have been satisfied through (i) a payment of $25,000 from the Legacy Sponsor to cover certain
expenses on behalf of the Company in exchange for the issuance of the Founder Shares, (ii) a loan of approximately $195,000 from the
Legacy Sponsor pursuant to a promissory note for up to $250,000 (the “IPO Promissory Note”), (iii) the net proceeds from
the consummation of the Private Placement not held in the Trust Account, (iv) the Polar Capital Investment (as defined in Note 5), and
(v) the Working Capital Loans (as defined in Note 5) pursuant to the 2021 Promissory Note and the 2024 Promissory Note (each as defined
in Note 5). The Company fully repaid the IPO Promissory Note on October 19, 2021. No additional borrowing is available under the IPO
Promissory Note (see Note 5).

As
of September 30, 2025, the Company had drawn $1,250,000 from the Polar Capital Investment that