Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 13

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 13
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SEPTEMBER 30, 2025

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Cash and Cash Equivalents

The Company considers all short-term
investments, other than those held in the trust account, with an original maturity of three months or less when purchased to be cash
equivalents. The Company had cash and cash equivalents of $1,149,892 as of September 30, 2025 and none as of December 31,
2024.

Marketable Securities Held in Trust Account

As of September 30, 2025, marketable securities
held in the Trust Account are comprised of U.S. government treasury bills maturing within three months amounting to $175,466,068.

Class A Ordinary Shares Subject to Possible Redemption

The Company’s Class A ordinary shares that
were sold as part of the Units in the Initial Public Offering contain a redemption feature which allows for the redemption of such Public
Shares in connection with the Company’s liquidation, if there is a shareholder vote or tender offer in connection with the Business
Combination and in connection with certain amendments to the Company’s Amended and Restated Memorandum and Articles of Association.
In accordance with ASC 480, conditionally redeemable Class A ordinary shares (including Class A ordinary shares that have redemption rights
that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the
Company’s control) are classified as temporary equity. Ordinary liquidation events, which involve the redemption and liquidation
of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. Although the Company did not specify a maximum
redemption threshold, its charter provides that currently, the Company will only redeem its Public Shares. However, the threshold in its
Amended and Restated Memorandum and Articles of Association would not change the nature of the underlying shares as redeemable and thus
the Public Shares are required to be presented outside of permanent equity. The Company recognizes changes in redemption value immediately
as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value ($10.17 per share as of September 30,
2025) at the end of each reporting period. Such changes are reflected in additional paid-in capital, or in the absence of additional paid-in
capital, in accumulated deficit.

As of September 30, 2025, the Class A ordinary shares reflected
in the condensed balance sheet is