Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 5

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 5
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 Class A ordinary share issuance costs 
    $6,900,000 
  
    Repayment of promissory note - related party via funds held by Sponsor 
    $112,848 

The accompanying notes are an integral part
of these unaudited condensed financial statements.

4

DIGITAL ASSET ACQUISITION CORP.

SEPTEMBER 30, 2025

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 September 30, 2025, the Company had
not commenced any operations. All activity for the period from December 9, 2024 (inception) through September 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