Company: DAAQ
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001213900-25-053846
Chunk: 9

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-06-12
Form: 10-Q
Item: Item 8
Chunk 9
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 derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.
Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition
in the Company’s unaudited condensed financial statements.

The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest
and penalties as of March 31, 2025. The Company is currently not aware of any issues under review that could result in significant
payments, accruals or material deviation from its position. The Company is considered an exempted Cayman Islands Company and is presently
not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. Consequently, income taxes are
not reflected in the Company’s unaudited condensed financial statements.

Ordinary Shares Subject to Possible Redemption

All of the Class A ordinary shares issued 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 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. The Company did not specify a maximum redemption threshold. However, any threshold in its Amended and Restated Memorandum
and Articles of Association would not change the nature of the underlying shares as redeemable and thus Public Shares would be required
to be disclosed outside of permanent equity. The Company recognizes changes in redemption value immediately as they occur and adjusts
the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Such changes are reflected
in additional paid-in capital, or in the absence of additional capital, in accumulated deficit.

9

DIGITAL ASSET ACQUISITION CORP. 

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

(UNAUDITED)

Net Loss Per Ordinary Share

Net loss