Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 10

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 10
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 penalties as of June 30, 2025. The Company is currently not aware of any issues
under review that could result in significant payments, accruals or material deviation from its position. The Company is considered an
exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands
or the United States. Consequently, income taxes are not reflected in the Company’s financial statements.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution
which, at times may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on this account
and management believes the Company is not exposed to significant risks on such account.

Net
Income Per Ordinary Share

Net
income per ordinary share is computed by dividing net income by the weighted average number of ordinary shares outstanding during the
period. The calculation of diluted income per share does not consider the effect of the warrants issued in connection with the Initial
Public Offering since the exercise of the warrants are contingent upon the occurrence of future events. The Company has two classes of
ordinary shares, which are referred to as redeemable Class A ordinary shares and Class B ordinary shares. Accretion associated with the
redeemable shares of Class A ordinary shares is excluded from income per ordinary share as the redemption value approximates fair value.

The
Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares
and then share in the earnings of the Company included in redeemable Class A ordinary shares. As a result, diluted income per Class A
ordinary share is the same as basic income per Class A ordinary share for the periods presented.

 Class B ordinary shares includes 750,000 shares that were subject to forfeiture if the over-allotment option was not exercised in full or in part by the Underwriters (see Note 6). On April 30, 2025, the Underwriter’s over-allotment option was exercised in full simultaneously with the Initial Public Offering, and the 750,000 Class B ordinary shares were no longer subject to forfeiture.

9

DIGITAL
ASSET ACQUISITION CORP. 

JUNE
30, 2025

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

The
following tables reflects the calculation of basic and diluted net income per share: