Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
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Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
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NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE
1. DESCRIPTION OF ORGANIZATION, BUSINESS OPERATIONS AND GOING CONCERN

Digital
Asset Acquisition Corp. (the “Company”) is a blank check company incorporated in the Cayman Islands on December 9, 2024.
The Company was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or
similar business combination with one or more businesses (a “Business Combination”). The Company is not limited to a particular
industry or geographic region for purposes of consummating a Business Combination. The Company is an early stage and emerging growth
company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

As
of June 30, 2025, the Company had not commenced any operations. All activity for the period from December 9, 2024 (inception) through
June 30, 2025 relates to the Company’s formation and initial public offering (“Initial Public Offering”). The Company
will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate
non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering
and sale of Private Placement Warrants (defined below). The Company has selected December 31 as its fiscal year end.

The
registration statement for the Company’s Initial Public Offering was declared effective on April 28, 2025. On April 30, 2025,
the Company consummated the Initial Public Offering of 17,250,000 units (the “Units” and, with respect to the Class A ordinary
shares included in the Units sold, the “Public Shares”), including 2,250,000 Units issued pursuant to the exercise of the
Underwriters’ (as defined below) over-allotment option in full, generating gross proceeds of $172,500,000 (see Note 3). Refer to
the Company’s April 30, 2025 audited balance sheet reflecting the proceeds of the Initial Public Offering filed with the U.S. Securities
and Exchange Commission (“SEC”) on Form 8-K on May 6, 2025.

Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of 5,450,000 warrants at a price of $1