Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 70

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 70
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 the Trust Account to repay such loaned amounts, but no proceeds
from the Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into warrants, at a price of
$1.00 per warrant at the option of the lender, upon consummation of the initial Business Combination. The warrants would be identical
to the Private Placement Warrants. Other than as set forth above, the terms of such loans by the Company’s officers and directors,
if any, have not been determined and no written agreements exist with respect to such loans. There are no such outstanding working capital
loans as of September 30, 2025 and December 31, 2024.

NOTE 7. COMMITMENTS AND CONTINGENCIES

Registration and Shareholder Rights Agreement

The holders of the (i) Founder Shares, which were
issued in a private placement prior to the closing of the Initial Public Offering, (ii) Private Placement Warrants and the Class A ordinary
shares underlying such Private Placement Warrants and (iii) Private Placement Warrants that may be issued upon conversion of working capital
loans will have registration rights to require the Company to register a sale of any of the Company’s securities held by them and
any other securities of the Company acquired by them prior to the consummation of the Company’s initial Business Combination pursuant
to a registration rights agreement signed on the effective date of the Initial Public Offering. Pursuant to the registration rights agreement
and assuming $1,500,000 of working capital loans are converted into warrants, the Company will be obligated to register up to 12,700,000
Class A ordinary shares and 6,500,000 warrants. The number of Class A ordinary shares includes (i) 5,750,000 Class A ordinary shares to
be issued upon conversion of the Founder Shares, (ii) 5,450,000 Class A ordinary shares underlying the Private Placement Warrants and
(iii) 1,500,000 Class A ordinary shares underlying the warrants that may be issued upon conversion of working capital loans. The number
of warrants includes up to 5,450,000 Private Placement Warrants and 1,500,000 warrants that may be issued upon the conversion of working
capital loans. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company
registers such securities. In addition, the holders have certain “piggyback” registration