Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 16

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 16
---
 at fair value upon the grant date. The Company determined the conversion
of such Class B ordinary shares into Class A ordinary shares upon consummation of the initial Business Combination represents a performance
obligation. Compensation expense related to the Founder Shares is recognized only when the performance condition is probable of occurrence
under the applicable accounting literature. The condition of the consummation of an initial Business Combination is considered not to
be probable and, as such, the Company has not recognized the expense related to the issuance of these shares.

The
Founder Shares are designated as Class B ordinary shares and, except as described below, are identical to the Class A ordinary shares
included in the Units sold in the Initial Public Offering, and holders of Founder Shares have the same shareholder rights as Public Shareholders,
except that (i) the Founder Shares are subject to certain transfer restrictions, as described in more detail below, (ii) the Founder
Shares are entitled to registration rights, (iii) the Company’s Sponsor, officers and directors have entered into a letter agreement
with the Company, pursuant to which they have agreed to (A) waive their redemption rights with respect to their Founder Shares and Public
Shares in connection with the completion of the Company’s initial Business Combination, (B) waive their redemption rights with
respect to their Founder Shares and Public Shares in connection with a shareholder vote to approve an amendment to the Company’s
Amended and Restated Memorandum and Articles of Association (1) to modify the substance or timing of the Company’s obligation to
allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of the Company’s Public
Shares if the Company has not consummated an initial Business Combination within the Completion Period, (2) with respect to any other
material provisions relating to shareholders’ rights or pre-initial Business Combination activity, (3) waive their rights to liquidating
distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete the Company’s initial
Business Combination within the Completion Period, although they will be entitled to liquidating distributions from the Trust Account
with respect to any Public Shares they hold if the Company fails to complete the initial Business Combination within such time period
and to liquidating distributions from assets outside the Trust Account and (4) vote any Founder Shares held by them and any Public Shares
purchased during or after the Initial Public Offering (including in open market and privately negotiated transactions) in favor of the
initial Business Combination (including any proposals recommended