Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 66

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 66
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ors (for an aggregate of 40,000 Class B ordinary shares) at the same price that the Sponsor had purchased such shares or approximately
$0.004 per share. The Class B ordinary shares will automatically convert into Class A ordinary shares immediately prior to, concurrently
with or immediately following the consummation of the initial Business Combination, or at any time prior thereto at the option of the
holder thereof, on a one-for-one basis.

The transfer of the Founder Shares to the Company’s
advisors and director nominees is in the scope of ASC 718. Under ASC 718, stock-based compensation associated with equity-classified awards
is measured at fair value upon the grant date. The Company determined the conversion of such Class B ordinary shares into Class A ordinary
shares upon consummation of the initial Business Combination represents a performance obligation. Compensation expense related to the
Founder Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature.
The condition of the consummation of an initial Business Combination is considered not to be probable and, as such, the Company has not
recognized the expense related to the issuance of these shares.

The Founder Shares are designated as Class B ordinary
shares and, except as described below, are identical to the Class A ordinary shares included in the Units sold in the Initial Public Offering,
and holders of Founder Shares have the same shareholder rights as Public Shareholders, except that (i) the Founder Shares are subject
to certain transfer restrictions, as described in more detail below, (ii) the Founder Shares are entitled to registration rights, (iii)
the Company’s Sponsor, officers and directors have entered into a letter agreement with the Company, pursuant to which they have
agreed to (A) waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of
the Company’s initial Business Combination, (B) waive their redemption rights with respect to their Founder Shares and Public Shares
in connection with a shareholder vote to approve an amendment to the Company’s Amended and Restated Memorandum and Articles of Association
(1) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial
Business Combination or to redeem 100% of the Company’s Public Shares if the Company has not consummated an initial Business Combination
within the Completion Period, (2) with respect to any other material provisions relating to shareholders’ rights or pre-initial
Business Combination activity, (3) waive