Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 8

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 8
---
 $173,664,886.

Class
A Ordinary Shares Subject to Possible Redemption

The
Company’s Class A ordinary shares that were sold as part of the Units in the Initial Public Offering contain a redemption feature
which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a shareholder vote
or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s Amended
and Restated Memorandum and Articles of Association. In accordance with ASC 480, conditionally redeemable Class A ordinary shares (including
Class A ordinary shares that have redemption rights that are either within the control of the holder or subject to redemption upon the
occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. Ordinary liquidation
events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions
of ASC 480. Although the Company did not specify a maximum redemption threshold, its charter provides that currently, the Company will
only redeem its Public Shares. However, the threshold in its Amended and Restated Memorandum and Articles of Association would not change
the nature of the underlying shares as redeemable and thus the Public Shares are required to be presented outside of permanent equity.
The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value 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 UN