Compass Digital Acquisition Corp. SEC 10-Q Report

Compass Digital Acquisition Corp., a special purpose acquisition company (SPAC) focused on digital and renewable energy sectors, has released its Form 10-Q report for the third quarter of 2023. The report provides a comprehensive overview of the company's financial performance and key business activities, including ongoing efforts to complete a business combination with EEW Renewables Ltd. Financial Highlights Net (loss) income: $(414,318), reflecting a decrease from a net income of $475,460 in the same period last year, primarily due to changes in fair value of derivative warrant liabilities and non-redemption liability.Basic and diluted net (loss) income per share- Class A Ordinary Shares subject to possible redemption: $(0.07), compared to $0.05 in the prior year period, indicating a decline in earnings per share.Basic and diluted net (loss) income per share- non-redeemable Class A Ordinary Shares: $(0.07), compared to $0.05 in the prior year period, showing a decrease in earnings per share.Basic and diluted net (loss) income per share- non-redeemable Class B Ordinary Shares: $(0.07), compared to $0.05 in the prior year period, highlighting a reduction in earnings per share. Business Highlights Business Combination Efforts: Compass Digital Acquisition Corp. is actively pursuing a business combination, having entered into a Business Combination Agreement with EEW Renewables Ltd. This agreement outlines the merger and share exchange processes, aiming to make EEW a wholly-owned subsidiary of a new public company, EEW Renewables Corp.Sponsor Handover: In August 2023, the company underwent a sponsor handover, transferring control from Compass Digital SPAC LLC to HCG Opportunity, LLC. This transition included changes in the board of directors and executive management, which may impact the company's strategic direction and operational focus.Extension of Combination Period: The company has extended its deadline to complete a business combination multiple times, with the current deadline set for April 20, 2026. This extension provides additional time to finalize a suitable business combination, reflecting ongoing efforts to secure a viable target.Non-Redemption Agreements: The company has entered into several non-redemption agreements with investors to prevent the redemption of public shares, thereby maintaining sufficient capital in the trust account to support the business combination process.Founder Share Conversions: The sponsors have converted a significant number of founder shares into Class A ordinary shares, which are subject to restrictions and waivers regarding trust account funds. This conversion aligns with strategic efforts to facilitate the business combination.Liquidity and Going Concern: As of June 30, 2025, the company reported a working capital deficit and limited cash resources, raising substantial doubt about its ability to continue as a going concern without completing a business combination or securing additional financing.Future Outlook: The company is focused on completing its business combination with EEW Renewables Ltd. and transitioning to a publicly traded entity. This strategic move is expected to enhance operational capabilities and market presence in the renewable energy sector.SEC Filing: Compass Digital Acquisition Corp. [ CDAQ ] - 10-Q - Aug. 13, 2025