Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 191

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 1
Chunk 191
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 day on which the Company consummates the initial Business Combination (such price, the “Market Value”) is below
$9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market
Value and the Newly Issued Price, and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal
to 180% of the higher of the Market Value and the Newly Issued Price.

The
Private Placement Warrants (including the Class A ordinary shares issuable upon exercise of the Private Placement Warrants) will not
be transferable, assignable or salable until 30 days after the completion of the initial Business Combination. The Private Placement
Warrants have terms and provisions that are identical to those of the Public Warrants sold as part of the Units in the Initial Public
Offering.

The
Company accounts for the 14,075,000 warrants issued in connection with the Initial Public Offering (including 8,625,000 Public Warrants
and 5,450,000 Private Placement Warrants) in accordance with the guidance contained in ASC 815-40. Such guidance provides that the warrants
described above are not precluded from equity classification. Equity-classified contracts are initially measured at fair value (or allocated
value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.

The
fair value of the Public Warrants and Private Placement Warrants at issuance were estimated using the Black-Scholes option pricing model,
with the following assumptions:

    Risk-free interest rate 
     3.6%
  
    Expected term (years) 
     2.52 
  
    Expected volatility 
     7.9%
  
    Stock price on valuation date 
    $10.21 
  
    Exercise price 
    $11.5 
  
    Expected dividend 
     —%
  
    Market pricing adjustment 
     15%

16

DIGITAL
ASSET ACQUISITION CORP. 

JUNE
30, 2025

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE
9. FAIR VALUE MEASUREMENTS

The
fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would
have received in connection with the sale of the assets or paid in connection with the transfer of