Company: DAAQ
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001213900-25-053846
Chunk: 42

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-06-12
Form: 10-Q
Item: Item 2
Chunk 42
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purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with
one or more businesses (a “Business Combination”). We have not selected any business combination target and we have
not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target.
We intend to effectuate our initial Business Combination using cash from the proceeds of our initial public offering (the “Initial
Public Offering”) and the sale of the private placement warrants, the proceeds of the sale of our shares in connection with our
initial Business Combination pursuant to the forward purchase agreements (or backstop agreements we may enter into or otherwise), shares
issued to the owners of the target, debt issued to bank or other lenders or the owners of the target, or a combination of the foregoing
or other sources.

Results of Operations

We have neither engaged in any
operations nor generated any revenues to date. Our only activities for the three-month period ended March 31, 2025, were organizational
activities and those necessary to prepare for our Initial Public Offering. We do not expect to generate any operating revenues until after
the completion of our initial Business Combination. We will generate non-operating income in the form of interest income on investments
held in our Trust Account after the Initial Public Offering. We incur expenses as a result of being a public company (for legal, financial
reporting, accounting and auditing compliance), as well as for due diligence expenses.

19

For the three months ended March 31, 2025, we had a net loss of $54,616,
which resulted from general and administrative expenses of $54,616.

Through March 31, 2025, our efforts have
been limited to organizational activities, activities relating to the Initial Public Offering, and activities relating to general corporate
matters.

Liquidity and Capital Resources

For the three months ended March 31, 2025,
net cash used in operating activities was $25,000, which was due to our net loss of $54,616, offset by changes in working capital
accounts of $29,616 and operating expenses paid via promissory note of $25,000.

The registration
statement for the Company’s Initial Public Offering was declared effective on April 28, 2025.
On April 30, 2025, the Company consummated the Initial Public Offering of 17,250,000
units, (the “Units” and