Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 171

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 1
Chunk 171
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 the Company for general
working capital purposes. At the closing of the Initial Public Offering on April 30, 2025, $1,602,224 of the proceeds were due to the
Company to be held by the Sponsor outside of the Trust Account for working capital purposes. The amount of excess funds due to the Company
is currently represented as Due from Sponsor in the amount of $1,281,540 on the balance sheet as of June 30, 2025. Accordingly,
management has since re-evaluated the Company’s liquidity and financial condition and determined that sufficient capital exists
to sustain operations one year from the date the financial statements were issued and therefore substantial doubt has been alleviated.

The
Company will have until the end of the Completion Period to consummate a Business Combination. If a Business Combination is not consummated
by the end of the Completion Period, there will be a mandatory liquidation and subsequent dissolution 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).

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 June 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