Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 20

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 20
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 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 June 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 rights with respect to registration statements filed subsequent to the Company’s completion of the Company’s
initial Business Combination. The