Company: DAAQ
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001213900-25-053846
Chunk: 11

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-06-12
Form: 10-Q
Item: Item 8
Chunk 11
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 ASC 718 defines a fair value-based method
of accounting for an employee share option or similar equity instrument. The Company recognizes all forms of share-based payments at their
fair value on the grant date, which are based on the estimated number of awards that are ultimately expected to vest. Share-based payments
are valued using a Black-Scholes option pricing model. Grants of share-based payment awards issued to non-employees for services rendered
have been recorded at the fair value of the share-based payment, which is the more readily determinable value. The grants are amortized
on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting
does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service. Share-based
compensation expenses are included in costs and operating expenses depending on the nature of the services provided in the statement of
operations.

Recent Accounting Standards

In November 2023, the FASB issued Accounting Standards
Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”).
The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided
to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported
measure of segment profit or loss.

10

DIGITAL ASSET ACQUISITION CORP. 

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

(UNAUDITED)

The ASU requires that a public entity disclose
the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing
segment performance and deciding how to allocate resources. Public entities will be required to provide all annual disclosures currently
required by ASC Topic 280, Segment Reporting (“ASC 280”) in interim periods, and entities with a single reportable
segment are required to provide all the disclosures required by the amendments in this ASU and existing segment disclosures in ASC 280.
The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December
15, 2024, with early adoption permitted. The Company adopted this ASU for the annual period ended December 31,