Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 33

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 33
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 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

The
                                            preparation of condensed financial statements and related disclosures in conformity with
                                            accounting principles generally accepted in the United States of America requires management
                                            to make estimates and assumptions that affect the reported amounts of assets and liabilities,
                                            disclosure of contingent assets and liabilities at the date of the financial statements,
                                            and income and expenses during the periods reported. Actual results could materially differ
                                            from those estimates. We have identified the following critical accounting estimates that
                                            are most critical to the portrayal of our financial condition and results of operations and
                                            that require significant, difficult, subjective, or complex judgements:

Net
Income Per Share

Net
income per ordinary share is computed by dividing net income by the weighted average number of ordinary shares outstanding during the
period. The calculation of diluted income per share does not consider the effect of the warrants issued in connection with the Initial
Public Offering since the exercise of the warrants are contingent upon the occurrence of future events. The Company has two classes of
ordinary shares, which are referred to as redeemable Class A ordinary shares and Class B ordinary shares. Accretion associated with the
redeemable shares of Class A Ordinary Shares is excluded from income per ordinary share as the redemption value approximates fair value.

At
June 30, 2025, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted
into ordinary shares and then share in the earnings of the Company included in redeemable Class A ordinary shares. As a result, diluted
income per Class A ordinary share is the same as basic income per Class A ordinary share for the periods presented.

Class
B ordinary shares includes 750,000 shares that were subject to forfeiture if the over-allotment option was not exercised in full or in
part by the Underwriters (see Note 6). On April 30, 2025, the Underwriters’ over-allotment option was exercised in full simultaneously
with the Initial Public Offering, and the 750,000 Class B ordinary shares were no longer subject to forfeiture. 

Class
A Ordinary Shares Subject to Possible Redemption

The
Company’s Class A ordinary shares that were sold as part of the Units in the Initial Public Offering contain a redemption feature
which allows for the