Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 181

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 1
Chunk 181
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 Public Offering). On April
30, 2025, the Underwriters exercised their over-allotment option in full as part of the closing of the Initial Public Offering. As such,
the 750,000 Founder Shares are no longer subject to forfeiture.

In
January 2025, the Sponsor transferred 25,000 Founder Shares to three director nominees (for an aggregate of 75,000 Class B ordinary shares)
and 10,000 Founder Shares to four Company advisors (for an aggregate of 40,000 Class B ordinary shares) at the same price that the Sponsor
had purchased such shares or approximately $0.004 per share. The Class B ordinary shares will automatically convert into Class A ordinary
shares immediately prior to, concurrently with or immediately following the consummation of the initial Business Combination, or at any
time prior thereto at the option of the holder thereof, on a one-for-one basis.

The
transfer of the Founder Shares to the Company’s advisors and director nominees is in the scope of ASC 718. Under ASC 718, stock-based
compensation associated with equity-classified awards is measured 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