Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 177

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 1
Chunk 177
---
ator: 

    Net income 
    $699,670  
    $339,332  
    $507,795  
    $466,896 
  
    Denominator: 

    Weighted Average Ordinary Shares 
     11,691,666  
     5,750,000  
     5,845,833  
     5,375,000 
  
    Diluted
    net income per ordinary share 
    $0.06  
    $0.06  
    $0.09  
    $0.09 

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, Fair Value Measurement,
approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.

Warrants

The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in ASC 480 and ASC Topic 815, Derivatives and Hedging (“ASC 815”).
The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability
pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether
the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment,
which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent period end date
while the warrants are outstanding.

For
issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component
of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification,
the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date
thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss in the statements of operations.

The
Public Warrants and Private Placement Warrants are not precluded from equity classification and were accounted for as such on the date
of issuance.

Share-Based
Compensation 

The
Company records share-based compensation in accordance with ASC Topic 718, Compensation-Share Compensation (“ASC 718”).
ASC 718