Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 149

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part II, Item 1
Chunk 149
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ITEM
1. LEGAL PROCEEDINGS

None.

ITEM
1A. RISK FACTORS

Factors
that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our final
prospectus for our Initial Public Offering filed with the SEC on April
30, 2025. Any of these factors could result in a significant or material adverse effect on our
results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial
may also impair our business or results of operations. As of the date of this Quarterly Report, there have been no material changes to
the risk factors disclosed in our final prospectus for our Initial Public Offering filed with the SEC on April 30, 2025.

ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The
registration statement for the Company’s Initial Public Offering was declared effective on April 28,
2025. On April 30, 2025, we consummated the Initial
Public Offering of 17,250,000 Units, including 2,250,000 Units
issued pursuant to the exercise of the Underwriters’ over-allotment option in full, generating gross proceeds of $172,500,000.

Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of 5,450,000 Private Placement Warrants at a price
of $1.00 per warrant generating gross proceeds of $5,450,000. Of the 5,450,000 Private Placement Warrants, the Underwriters purchased
an aggregate of 1,725,000 Private Placement Warrants and the Sponsor purchased 3,725,000 Private Placement Warrants. Each whole Private
Placement Warrant is exercisable to purchase one Class A ordinary share at a price of $11.50 per share. The issuance was made pursuant
to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

The
Private Placement Warrants are identical to the warrants underlying the Units sold in the Initial Public Offering, except that the Private
Placement Warrants (i) are not redeemable by us, (ii) are not transferable, assignable or salable until after the completion of a Business
Combination, subject to certain limited exceptions, (iii) may be exercised on a cashless basis, (iv) are entitled to registration