Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 174

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 1
Chunk 174
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 of redeemable ordinary shares
to equal the redemption value ($10.07 per share as of June 30, 2025) at the end of each reporting period. Such changes are reflected
in additional paid-in capital, or in the absence of additional paid-in capital, in accumulated deficit.

As of June 30,
2025, the Class A ordinary shares reflected in the balance sheet is reconciled in the following table:

    Gross proceeds 
    $172,500,000 
  
    Less: 

    Proceeds allocated to
    Public Warrants (as defined below) 
     (500,250)
  
    Issuance costs allocated
    to Class A ordinary shares 
     (10,881,785)
  
    Plus: 

    Accretion of carrying
    value to redemption value 
     12,546,921 
  
    Class
    A ordinary shares subject to possible redemption 
    $173,664,886 

8

DIGITAL
ASSET ACQUISITION CORP. 

JUNE
30, 2025

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Offering
Costs Associated with the Initial Public Offering

The
Company complies with the requirements of ASC 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A - Expenses of Offering.
Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to
the Initial Public Offering. Offering costs directly attributable to the issuance of an equity contract to be classified in equity are
recorded as a reduction in equity. Offering costs for equity contracts that are classified as assets and liabilities are expensed immediately.
The Company incurred offering costs amounting to $10,931,212, consisting of $1,725,000 of cash underwriting fees, $1,725,000 of underwriting
fees paid via the issuance of Private Placement Warrants, $6,900,000 of deferred underwriting fees and $581,212 of other offering costs.
As such, the Company recorded $10,881,785 of offering costs as a reduction of temporary equity and $49,427 of offering costs as a reduction
of permanent equity.

Income
Taxes

The
Company accounts for income taxes under ASC Topic 740, Income Taxes (“ASC 740”). ASC 740 requires the recognition
of deferred tax assets and liabilities for both the expected impact of differences between the financial