Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 5

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 5
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 (ii) the actual amount per Public Share held
in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in
the value of the Trust Account assets, in each case less taxes payable and up to $100,000 of interest to pay liquidation expenses, provided
that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all
rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the
indemnity of the Underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities
Act of 1933, as amended (the “Securities Act”).

Liquidity
and Capital Resources

As
of June 30, 2025, the Company had a working capital surplus of $1,193,936. Prior to the completion of the Initial Public Offering,
the Company lacked the liquidity it needed to sustain operations for a reasonable period of time, which is considered to be one year
from the issuance date of the financial statements. The Company has since completed its Initial Public Offering at which time capital
in excess of the funds deposited in the Trust Account and/or used to fund offering expenses will be available to 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,