Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 173

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 1
Chunk 173
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AP requires the Company’s management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses
and disclosure of contingent assets and liabilities during the reporting period. Making estimates requires management to exercise significant
judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed
at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to
one or more future confirming events. Accordingly, actual results could differ from those estimates.

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company did not have any cash equivalents as of June 30, 2025 and December 31, 2024.

Marketable
Securities Held in Trust Account

As
of June 30, 2025, marketable securities held in the Trust Account are comprised of U.S. government treasury bills maturing within three
months amounting to $173,664,886.

Class
A Ordinary Shares Subject to Possible Redemption

The
Company’s Class A ordinary shares that were sold as part of the Units in the Initial Public Offering 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 have 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. Although the Company did not specify a maximum redemption threshold, its charter provides that currently, the Company will
only redeem its Public Shares. However, the threshold in its Amended and Restated Memorandum and Articles of Association would not change
the nature of the underlying shares as redeemable and thus the Public Shares are required to be presented outside of permanent equity.
The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value