Company: DAAQ
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001213900-25-053846
Chunk: 18

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-06-12
Form: 10-Q
Item: Item 8
Chunk 18
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 agreed to pay to the Sponsor up to $20,000 per month for these services during
the Combination Period.

Working Capital Loans

In order to finance transaction costs in connection
with the initial Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors
may, but are not obligated to, loan the Company funds as may be required on a non-interest bearing basis. If the Company completes the
initial Business Combination, the Company will repay such loaned amounts. In the event that the initial Business Combination does not
close, the Company may use a portion of the working capital held outside the Trust Account to repay such loaned amounts, but no proceeds
from the Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into warrants, at a price of
$1.00 per warrant at the option of the lender, upon consummation of the initial Business Combination. The warrants would be identical
to the Private Placement Warrants. Other than as set forth above, the terms of such loans by the Company’s officers and directors,
if any, have not been determined and no written agreements exist with respect to such loans. There are no such outstanding working capital
loans as of March 31, 2025 and December 31, 2024.

14

DIGITAL ASSET ACQUISITION CORP. 

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

(UNAUDITED)

NOTE 7. COMMITMENTS AND CONTINGENCIES

Registration and Shareholder Rights Agreement

The holders of the (i) Founder Shares, which were
issued in a private placement prior to the closing of the Initial Public Offering, (ii) Private Placement Warrants and the Class A ordinary
shares underlying such Private Placement Warrants and (iii) Private Placement Warrants that may be issued upon conversion of working capital
loans will have registration rights to require the Company to register a sale of any of the Company’s securities held by them and
any other securities of the Company acquired by them prior to the consummation of the Company’s initial Business Combination pursuant
to a registration rights agreement signed on the effective date of the Initial Public Offering. Pursuant to the registration rights agreement
and assuming $1,500,000 of working capital loans are converted into warrants, the Company will be obligated to register up to 12,700,000
Class A ordinary shares