Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 100

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 100
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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.

At September 30, 2025, 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 the value of 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 to the accompanying condensed financial statements). 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.

24

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 Accounting Standards Codification (“ASC”) Topic 480, Distinguishing Liabilities from Equity (“ASC
480”), conditionally redeemable Class A ordinary shares (including Class A ordinary shares that feature 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