Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 96

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 96
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atters.

Liquidity, Capital Resources and Going Concern

For the nine-month period ended September 30,
2025, net cash used in operating activities was $86,788. Net income of $2,665,323 was adjusted for earnings on marketable securities in
our Trust Account of $2,966,068, operating expenses paid via promissory note - related party of $112,848, and operating expenses paid
by Sponsor from proceeds withdrawn from Trust Account of $267,836. Changes in operating assets and liabilities provided $6,849 of cash
for operating activities primarily due to increases in accrued expenses and due to related party, offset by an increase in prepaid insurance
as well as prepaid expenses and other current assets.

For the nine-month period ended September 30,
2025, net cash used in investing activities was $172,500,000 and affected by cash deposited in Trust Account.

For the nine-month period ended September 30,
2025, net cash provided by financing activities was $173,563,104, which was due to proceeds from the sale of Units (as defined below),
Private Placement Warrants (as defined below) and public warrants issued as part of the Units.

The Company’s
Initial Public Offering was declared effective on April 28, 2025.
On April 30, 2025, the Company consummated the Initial Public Offering of 17,250,000 units,
(the “Units” and, with respect to the shares of Class A ordinary shares included
in the Units sold, the “Public Shares”), including 2,250,000 Units issued pursuant to the exercise of the Underwriters’ (as
defined below) over-allotment option in full, generating gross proceeds of $172,500,000.

Simultaneously with the closing of the Initial
Public Offering, the Company consummated the sale of 5,450,000 warrants at a price of $1.00
per warrant (the “Private Placement Warrants”), generating gross proceeds of $5,450,000. Of the 5,450,000 Private Placement
Warrants, the underwriters of the Initial Public Offering (the “Underwriters”) purchased an aggregate of 1,725,000 Private
Placement Warrants and DAAQ Sponsor LLC, the Company’s sponsor (the “Sponsor”), purchased 3,725,000 Private Placement
Warrants.

Following the closing of the Initial Public Offering
on April 30, 2025