Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 97

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 97
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, an amount of $172,500,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering
and the sale of the Private Placement Warrants was placed in a trust account located in the United States (the “Trust Account”).

22

We intend to use substantially all of the funds
held in the Trust Account, including any amounts representing interest earned on the funds held in the Trust Account and not previously
released to us to pay our taxes (which interest shall be net of taxes payable and excluding deferred underwriting commissions) to complete
our initial Business Combination. We may withdraw interest to pay our taxes, if any. Our annual income tax obligations will depend on
the amount of interest and other income earned on the amounts held in the Trust Account. We expect the interest earned on the amount in
the Trust Account will be sufficient to pay our taxes. We expect the only taxes payable by us out of the funds in the Trust Account will
be income and franchise taxes, if any. To the extent that our ordinary shares or debt is used, in whole or in part, as consideration to
complete our initial Business Combination, the remaining proceeds held in the Trust Account will be used as working capital to finance
the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

After taking into consideration the consummation
of the Initial Public Offering, we do not believe we will need to raise additional funds in order to meet the expenditures required for
operating our business. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and
negotiating an initial Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available
to operate our business prior to our initial Business Combination. Moreover, we may need to obtain additional financing either to complete
our initial Business Combination or because we become obligated to redeem a significant number of our public shares upon completion of
our initial Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination.

In connection with our assessment of going concern
considerations in accordance with ASC Topic 205-40, “Presentation of Financial Statements - Going Concern,” we
have determined that the mandatory liquidation, raises substantial doubt about
our ability to continue as a going concern. Management continues to seek to complete the Business Combination prior to the mandatory liquidation date.
No