Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 153

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 153
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 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.

On
November 3, 2025, the Company received the Notice 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.

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