Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 122

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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 (b) Pubco 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.

23

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

Results
of Operations

Our
entire activity from inception up to March 31, 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 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 $