Company: DAAQ
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001213900-25-053846
Chunk: 14

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-06-12
Form: 10-Q
Item: Item 8
Chunk 14
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of the Company. The Founder Shares included an aggregate of up to 750,000 Class B ordinary shares subject to forfeiture by the Sponsor
to the extent that the Underwriters’ over-allotment option was not exercised in full or in part, so that the Sponsor would own,
on an as-converted basis, 25% of the Company’s issued and outstanding shares after the Initial Public Offering (assuming the Sponsor
does not purchase any Public Shares in the Initial 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 per-share price that the Sponsor had purchased such shares,
or approximately $0.004 per share. The Founder 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.

12

DIGITAL ASSET ACQUISITION CORP. 

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

(UNAUDITED)

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