Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 60

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 60
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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 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 September 30, 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 condensed financial statements.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal
Deposit Insurance Corporation of $250,000. The Company has not experienced losses on this account and management believes the Company
is not exposed to significant risks on such account.

Net Income per Ordinary Share

Net income per ordinary share is computed by dividing
net income by the weighted average number of ordinary shares outstanding during the period. The calculation of diluted income per share
does not consider the effect of the warrants issued in connection with the Initial Public Offering since the exercise of the warrants
are contingent upon the occurrence of future events. The Company has two classes of ordinary shares, which are referred to as redeemable
Class A ordinary shares and Class B ordinary shares. Accretion associated with the redeemable shares of Class A ordinary shares is excluded
from income per ordinary share as the redemption value approximates fair value.

At September 30, 2025, the Company did not have
any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the
earnings of the Company included in redeemable Class A ordinary shares. As a result, diluted income per Class A ordinary share is the
same as basic income per Class A ordinary share for the periods presented.

10

DIGITAL ASSET ACQUISITION CORP.

SEPTEMBER 30, 2025

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

The following tables reflect the calculation of
basic and diluted net income per share:

    Three