Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 130

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 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.

23

Results
of Operations

Our
entire activity from inception up to September 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 September 30, 2025, we had a net loss of $2,051,400, consisting of $2,062,698 in loss from operations, of which
$162,547 were operating expenses, including $30,000 of administrative expenses with related party and a change in fair value of non-redemption
liability of $1,870,151 offset by interest earned on cash held in the Trust Account of $11,298.

For
the nine months ended September 30, 2025, we had a net loss of $2,948,789, consisting of $2,807,174 in loss from operations, of which
$720,009 were operating expenses, including $90,000 of administrative expenses with related party and a change in fair value of non-redemption
liability of $1,997,165 , and a change in fair value of derivative warrant liabilities of $476,488 offset by interest earned on cash
held in the Trust Account of