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

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 11
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 a Business Combination is not consummated by the end of the Completion Period, there
will be a mandatory liquidation of the Company. No adjustments have been made to the carrying amounts of assets
or liabilities should the Company be required to liquidate after October 30, 2026 (or January 30, 2027). The Company intends
to complete the initial Business Combination before the mandatory liquidation date. However, there can be no assurance that the Company
will be able to consummate any Business Combination by October 30, 2026 (or January 30, 2027). Therefore, the Company has concluded
that there is substantial doubt about its ability to continue as a going concern for a period of one year from the date that these condensed
financial statements are issued.

7

DIGITAL ASSET ACQUISITION CORP.

SEPTEMBER 30, 2025

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed financial statements are
presented in U.S. dollars, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
and pursuant to the rules and regulations of the SEC, and reflect all adjustments, consisting only of normal recurring adjustments, which
are, in the opinion of management, necessary for a fair presentation of the financial position as of September 30, 2025 and the results
of operations, comprehensive income and cash flows for the periods presented. Certain information and disclosures normally included in
unaudited condensed financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations.
Interim results are not necessarily indicative of results for a full year or any future period.

The unaudited condensed financial statements should
be read in conjunction with the Company’s audited financial statements and notes thereto for the fiscal year ended December 31, 2024,
included in the Company’s Form S-1/A filed by the Company with the SEC on March 14, 2025 as well as the Company’s Form 8-K as of April
30, 2025 filed by the Company with the SEC on May 6, 2025.

Emerging Growth Company

The Company is an “emerging growth company,”
as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our