Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 34

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 34
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 any operations nor
generated any revenues to date. Our only activities for the nine months ended September 30, 2025, were organizational activities and those
necessary to prepare for our Initial Public Offering, as described below. We do not expect to generate any operating revenues until after
the completion of our initial Business Combination. We will generate non-operating income in the form of interest income on assets held
in our Trust Account (defined below) after the Initial Public Offering. We incur expenses as a result of being a public company (for legal,
financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the three months ended September 30, 2025,
we had net income of $1,690,631, which resulted from investment earnings on marketable securities held in the Trust Account of $1,801,001
and investment earnings on marketable securities held in the Operating Account of $6,322 offset by general and administrative expenses
of $116,692.

For the nine months ended September 30, 2025,
we had net income of $2,665,323, which resulted from earnings and realized gain on marketable securities held in Trust Account of $2,948,521
and investment earnings on marketable securities held in the Operating Account of $6,322 offset by general and administrative expenses
of $289,520.

Through September 30, 2025, our efforts have
been limited to organizational activities, activities relating to the Initial Public Offering, and activities relating to general corporate
matters.

Liquidity, Capital Resources and Going Concern

For the nine-month period ended September 30,
2025, net cash used in operating activities was $86,788. Net income of $2,665,323 was adjusted for earnings on marketable securities in
our Trust Account of $2,966,068, operating expenses paid via promissory note - related party of $112,848, and operating expenses paid
by Sponsor from proceeds withdrawn from Trust Account of $267,836. Changes in operating assets and liabilities provided $6,849 of cash
for operating activities primarily due to increases in accrued expenses and due to related party, offset by an increase in prepaid insurance
as well as prepaid expenses and other current assets.

For the nine-month period ended September 30,
2025, net cash used in investing activities was $172,500,000 and affected by cash deposited in Trust Account.

For the nine-month period ended September 30