Company: DAAQ
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001213900-25-053846
Chunk: 45

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-06-12
Form: 10-Q
Item: Item 2
Chunk 45
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 rights with respect to registration
statements filed subsequent to the Company’s completion of the Company’s initial Business Combination. The Company will bear
the expenses incurred in connection with the filing of any such registration statements.

Promissory Notes - Related Party

On December 11, 2024, the Sponsor agreed to loan the
Company an aggregate of up to $300,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Promissory
Note”). This loan is non-interest bearing and payable on the earlier of December 31, 2025 or the date on which the Company consummates
the Initial Public Offering of its securities. On March 31, 2025 and December 31, 2024, the Company had $112,848 and $0 outstanding
under the Promissory Note, respectively. In connection with the closing of the Initial Public Offering, the Company repaid the outstanding
balance of the promissory note in full.

Underwriting Agreement

The Company granted the Underwriters a 45-day
option to purchase up to 2,250,000 additional Units to cover over-allotments at the Initial Public Offering price, less the underwriting
commissions. Simultaneously with the closing of the Initial Public Offering, the Underwriters elected to fully exercise the over-allotment
option to purchase the additional 2,250,000 Units at a price of $10.00 per Unit.

The Underwriters were entitled to (1) an underwriting
discount of $0.20 per Unit, or $3,450,000 in the aggregate, of which (i) $0.10 per Unit was paid to the Underwriters in cash at the closing
of the Initial Public Offering and (ii) $0.10 per Unit was used by the Underwriters to purchase Private Placement Warrants, and (2) a
deferred fee of $0.40 per Unit, or $6,900,000. The deferred fee will become payable to the Underwriters from the amounts held in the Trust
Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement, and
will be based on the amount of funds remaining in the Trust Account after shareholder redemptions of Public Shares in connection with
the consummation of a Business Combination.

Critical Accounting Estimates

We describe our significant accounting policies
in Note 2 - Summary of Significant Accounting Policies, of the Notes